Capital Advisory
This is a service that is offered to Mortgage Professionals for loans that are for investment purpose only. Our job is to assist Capital Providers by screening and pre-underwriting loans to their guidelines.
Streamline Process
This helps the originator to understand what is needed. We help by processing and preparation of loan packages, so you can hit the ground funding.
Variety of Capital Providers
Capital providers range from Lenders with Wallstreet Capital, Pension backed Insurance funds, and Individual Investors. These investors typically have no or low points and fees.
Broker Qualifications
Experienced
Two plus years of mortgage origination experience.
Licensed where applicable.
You must be appropriately licensed.
Private and Hard Money Guidelines
Fix and Flip | Bridge | New Construction
- Loan amount from $85,000 to $3,000,000
- No Points
- FICO 650+
- Loan to ARV up to 70%
- Term Length up to 2 years
- No prepayment penalty
Property Types:
- Single-family residences
- Multi-family dwellings
- Apartments
- Commercial
- Rented property
Vesting:
- Individuals
- Partnerships
- LLCs
- Corporations
- Trusts
Loan Term:
- 1 – 3 year terms
- Prepayment penalty may apply.
Frequently Asked Questions
Who funds the loan
These loans are funded by the capital provider.
How Long does it take to fund a loan?
This is mostly a function of how complete the loan package is. If you have a complete loan package loans can close within 10 business days.
Do you speak with the borrowers?
No, that is your job. We will communicate with you, and you keep the contact with your borrower.
Do we speak with the capital providr?
No. You provide the documents needed to submit to underwriting and we maintain the communication with the Capital Provider.
Can we increase the interest rate and receive a premium for that?
No. You can charge points but you can not increase the interest rate to receive a yield.
How does one qualify for the 85% Loan-to-Cost?
One can typically qualify for the 85% Loan-to-Cost if the appraised As-Is-Value is higher than the purchase price.
For example: If you had an $850,000 As-is-Value, and an $800,000 purchase price, we would typically use the higher of the two.
Of course there are additional guidelines that apply, and these are for investment properties only.
How does fund control typically work?
For loans with Fund Fund Control or also known as a Contruction Hold-Back. The Guarantor / Borrower is set up with a Fund Control company. Here are the steps that take place.
1. Borrower provides their line item budget
2. Appraisal is done and provides the As-is-Value and the After-Repair Value.
3. The appraisal and the budget is provided to the fund control company.
4. The fund control company takes a look at the budget and what the typical charecteristics of a property would look like with that particular After-Repair-Value. It’s up to the fund control company to review and agree that the budget and plan is appropriate.
5. Once the loan closes, and the borrower has spent a certain amount of their own cash on repairs, then they ask the fund control company to inspect the property and review what they have done, and to reimburse them for their expenses from the funds that where held.
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