We are locals and specialize in providing private capital in Michigan suburbs. These are BUSINESS PURPOSE real estate loans. We do NOT offer consumer-purpose loans secured by primary residence or second home. We offer creative loan structures if needed for business purpose loans.
In a traditional situation, borrower would for a bank or credit union for loan. However, for short term needs Private money or hard Money loan provides access to capital quickly. The borrower even though would benefit from these loans, it comes with higher costs, for couple of reasons:
1. The lender who is providing the loan is looking for a better return as these are non - conventional
type of investments.
2. The risk of the project determines the rate of return too. This includes loan-to-value (LTV) on a
residential rehab loan; the location; amount of renovation needed for the property to make
it marketable etc.
In general terms are negotiable as everyone has to benefit from a project.
$10,000 to $400,000 Business Purpose Real Estate Loans
Non Owner Occupied Loans (We do not make consumer loans)
Private Money / Hard Money
Affordable Loan structuring
Acquire, Improve properties
Most funding turnaround time 15 – 30 days.
Funding generally for maximum of 12 months
Every hard money loan request is different.
Mostly we approveprivate capital loans when the borrower has “skin in the game”. Which means
theborrower must put money into every project we consider funding.
We prefer projects that are under 65% of the final market value. Other exceptions would be based on
the turnaround time and location of the project.
The LTV can also go much higher if you have other properties to cross collateralize or other assets the
lender may see as desirable.
Our loan applications do not have a minimum credit score. However, various factors including credit
score, overall financial strength, and ability to pay back the loan will factor into the maximum LTV,
down payment, points, and interest rate.
Additional personal Guarantor may be required.
Previous experience of the borrower in real estate are preferred. We like to review some of the previous
Borrower to use experienced and qualified contractors.
Deal must be safe and profitable for borrower.
Good communication with project updates from borrower to lender is a key aspect of successful project completion.
Overall; ethics, honesty and integrity with low debt of borrower will provide success in good, bad or
neutral economic situations.