Hard Money Loans to 90 Percent LTV

With the San Francisco Bay Area Real Estate Market being super-hot right now, with multiple offers and overbidding happening on a daily basis, surprisingly some of the markets are 15-20% higher than they were at the peak of the Real Estate boom.

As a hard money lender, I am fortunate enough to see such increase in hard money loan requests. With that said, I recently finalized a deal which will lend to 90% loan to value. This gives the borrower a tremendous amount of leverage, allowing the investor to take on multiple projects at once. The fee structures on these new loans are extremely competitive, considering the high loan to value ratio we lend to.

The following outlines the basic parameters of my newest hard money loan program:

Business Purpose Loans Only

Loans must be made to borrowing entities for sole and exclusive business purposes. We lend on first Deed of Trust for non-owner occupied one through four unit single family residential real property.

Experience Level

The principals of any borrowing entity must evidence at least 2 years of real estate industry experience, or six months experience in the practice of acquisition, rehabilitation, and sale of non-owner occupied single family residences within the State of California.

Track Record

The principals of any borrowing entity must evidence a documented track history of their most recent completed transactions. Borrowing entities without a documented track history of completed transactions must be evaluated on a case-by-case basis in the sole and exclusive discretion of the Company.

Credit Score

Principals for any borrowing entity must evidence a minimum credit score of 620 from a nationally recognized consumer credit reporting agency as determined by the Company in Company’s sole and exclusive discretion. Any principal of any borrowing entity evidencing a credit score below 620 will be considered on a case-by-case basis with sufficient compensating factors as determined by and in the Company’s sole and exclusive discretion.

Minimum Net Worth

All borrowing entities must evidence a minimum net worth of no less than $250,000 as evidenced in a form suitable to the Company (with the understanding that the Company may consider combined business and/or personal assets in determining qualification under the Minimum Net Worth basis in Company’s sole and exclusive discretion).

This program is literally a few days old, and I am just beginning on the launch. It is evident there will be a huge demand for this program. In the next few days, I will have put together a fast track program. Basically, once you get underwritten the first time, the process will be easy and streamlined, resulting in fast turnaround times. As one of the most aggressive loan programs in the hard money lending world, the need for the first underwrite is critical. We have a couple hundred million dollars to lend out. Please feel free to contact me to go over the details at [email protected].

Happy house flipping!