Address: 4082 Au Sable Dr, Gibsonia, PA
States They Lend In: Pennsylvania
- Loan Type:
- Loan Payments:
Monthly Rate: 15% + 1 Point
- Maximum Term:
- Minimum Term:
- Max Loan to Value:
70% of After Repaired Value
- Loan Range:
- Why CCC Holdings?
A loan can be completed 21 days
We are Pittsburghers who provide hard money or rehab loans to real estate investors in the Pittsburgh area including Allegheny, Butler, Beaver, Washington and Westmoreland Counties.
When a rehab milestone is completed and a draw payment is due, funds are typically sent within 24 hours of the request.
Why Hard Money?
Hard money loans are commercial loans made to real estate investors to purchase and rehab or repair investment properties. Often called rehab loans, these loans are short term and are based on the value of real estate that has been collateralized for the loan. Hard money lenders have higher interest rates than banks because they fund deals that do not conform to bank standards. For a real estate investor, assuming the property is bought at the right price, a hard money loan can cover the entire purchase and rehab costs
- When does it make sense to use a hard money loan?
When you have a property that you want to purchase and repair to either sell or refinance in a short period of time, and you have no other funding options. This financing is more expensive than a bank and less expensive than an equity partner. Basically, if you have more good deals than cash, you should consider hard money. Many of my long term clients are now able to do several more deals per year because of their access to our loan program.
What does it take to qualify for a loan (application process). Just as the interest rates and closing fees vary by lender, so does the underwriting criteria. To receive the most favorable terms, my ideal borrower has a credit score (middle) of 680 or better, debt to income (including new loan) of 45% or better, and some cash available. Based on this information, you will receive a proof of funds letter that you can use when making offers.
- What does it take for the property to qualify (appraisal)?
The loan to value (LTV) ratio caps the loan amount. We use 65% of the after repaired value (ARV). This is determined by our appraiser who will walk through the property with you and factor in your repair budget to
determine what the property will be worth when your repairs are completed. In addition to the LTV, most lenders have specific areas they are not comfortable lending in. You should discuss this with your lender before you make offers.
- Can an investor doing their first deal get a hard money loan?
Yes, around 25% of my new investor clients each year are doing their first project. One of the guidelines I use when looking at a new investors initial project is that the cost of repairs does not exceed 25% of the ARV. Normally, this rule keeps the new investor out of trouble.