Barnett Capital Ltd.


[Total: 34    Average: 3.4/5]


Phone: (224) 205-7266

Address: 450 Skokie Blvd., Bldg. 600, Northbrook, IL, 60062

Website: http://www.barnettreifinance.com/

Email: info@barnettreifinance.com

States They Lend In: All 50

 

Barnett Capital is a direct, private money lender serving residential rehab investors. We lend our own funds from the $1 billion in assets at Barnett Capital.

We approve lines of credit to fix and flip rehab properties as well as buy and hold rental properties. We can also finance cash out loans for borrowers who are seeking funding to capture another opportunity.

Our rates, terms, and points are flexible and unique to each project we fund. We can offer an interest rate of 16.99% with no points, or rates as low as 9.99% with points paid up front. Terms are unique to each project and will be discussed individually with the borrower.

We do not have a minimum/maximum loan amount, but rather we have a minimum property values. For fix and flip and new construction, we have a minimum after repair value of $100,000. For as is financing, we have a minimum as is value of $100,000.

As a subsidiary of Barnett Capital Ltd., we have access to over $1 billion under management.

 

  • What criteria do you use to approve a borrower? Do you have a minimum FICO score?

We do not use credit scores to evaluate borrowers. Instead, we consider a potential borrower’s assets to ensure that the borrower can support the loan amount they are requesting.

 

  • If there is no credit score requirement, why do I have to authorize a credit and background check during the full application process?

While we do not look at your FICO score to evaluate your approval, we use the credit and background check to confirm that there is nothing else outstanding that could affect our loan such as recent bankruptcies or judgments.

 

  • What is your experience requirement? Do you work with first time investors?

Typically, if the borrower is located outside of the Chicago area, we require them to have completed at least three successful real estate investment transactions. However, if the borrower has a significant amount of relevant real estate and/or construction experience, there may be some flexibility on this requirement. For Chicago-area investors, we do offer a first-time investors program. Borrowers are dealt with on a case-by-case basis based upon our proximity and ability to play a more integral role in their project.

 

  • How do you determine the loan amount?

We evaluate financing on a case-by-case basis and can offer funding up to 100% with sufficient additional collateral. However, in a typical fix and flip deal, we can will lend up to 85% of the projects’ total costs, which includes the purchase price and renovation costs and may also include net purchase closing costs such as attorney fees, property fees, title insurance, recording fees, etc. The outstanding 15% is typically paid by the borrower at closing.

 

  • What are the costs to close a loan?

We do not charge origination, processing, or underwriting fees. We do require two once-per-borrower deposits, each of which are credited back to the borrower over his or her first three deals. An application deposit of $150 is due after preliminary application approval, and a legal deposit of $1,500 is due after full application approval. Additional costs that the borrower should keep in mind include the cost of the appraisal (varies based on property type/size) and cost of inspection (typically $125 per draw)

 

  • What type of security do you require for a loan?

We require a first-lien mortgage on the investment property.

 

Fix and Flip Loan

 

For properties in need of renovation we can fund up to 85% of the total project costs which includes purchase price or the as-is value, construction costs, and purchase closing costs.

 

LENDING GUIDELINES

  • Maximum LTC 85%
  • Credit Score No Requirement
  • Occupancy Non-Owner Occupied
  • Property Types All Residential
    (single, multi-family or mixed-use properties)
  • Minimum Values Minimum ARV of $100,000
  • Points and Rate Points or no points?
  •  Rates from 8.99%-16.99%
  • Term 9 months, with longer terms available

 

As-Is Loan

 

Our as-is financing program helps investors realize opportunity by providing the capital for turnkey rental purchases, cash-out refinancing, wholesaling, or collateral-based lines of credit.

 

LENDING CRITERIA

  • Maximum LTV 65% – 70%
  • Credit Score No Requirement
  • Occupancy Non-Owner Occupied
  • Property Types All Residential
    (single, multi-family or mixed-use properties)
  • Minimum Values Minimum as-is value of $100,000 or minimum aggregate as-is value of $250,000 for multi-property transactions
  • Points and Rate Points or no points?
  • Rates from 8.99%-16.99%
  • Term 9 months, with longer terms available

 

Sight-Unseen Loan

 

Our sight-unseen program offers financing for properties that we cannot get into prior to funding. Example projects that fall under this program include auctions, certificates of sale, and sheriff’s sales.

 

LENDING CRITERIA

  • Maximum LTV Up to 50% of the purchase price
    (once we can access the property increased funding is available)
  • Credit Score No Requirement
  • Occupancy Non-Owner Occupied
  • Property Types All Residential
    (single, multi-family or mixed-use properties)
  • Minimum Values Minimum ARV or as-is value of $100,000
  • Points and Rate Points or no points?
  • Rates from 8.99%-16.99%
  • Term 9 months, with longer terms available

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