Address: P.O. Box 836634 Richardson, TX 75083
States They Lend In: Texas
Our Loan Program
Private lender loans
- Minimum after repaired value $100,000
- Maximum Loan to Value 70%
- Rate – 12%
- Term – 12 months
- Points – 2-3
- Payments – Monthly interest + Tax Escrow
- 12 Months Paid up insurance
- Tax Escrow Required
- No Pre-Payment Penalty
- $2000. Minimum Origination Fee
The Loan Process
Hard Money Loans
STEP 1 – Fill out the paperwork
The first step in the loan process is to download and print our forms package. While the property is the most important criteria in the loan approval process we need certain information about you the borrower. The more complete the forms and attachments are the easier and faster we can approve you for an “easy money” loan. The forms package tells us about you and your abilities and experience. (Click here to get your hard money loans forms)
STEP 2 – Send the paperwork
Once you have completed the forms package and have all supporting documentation you can fax or email them to our office.
STEP 3 – Review the paperwork
Once we review your documentation we will be able to provide to you (upon request) a pre-approval letter which may be beneficial to you when submitting offers.
STEP 4 – We order the appraisal then inspect the house
If you already have a property under contract and have submitted the contract along with your completed forms package we can usually give you an answer within 24 hours. The appraisal must be ordered by My Rehab Lender, it usually takes 3-4 days to get the appraisal back. Appraisals are only ordered once we have received payment. After we receive the appraisal we will schedule a time to walk the property with you.
We do not charge any up front fees for credit reports, underwriting, processing fees, application fees. The only fee you will be required to pay before closing is for the appraisal/inspection (and sometimes a structural engineer’s report if the foundation needs work).
STEP 5 – Provide follow-up on documentation and go to closing
Once the appraisal comes back at an acceptable price to My Rehab Lender, we will need a title commitment and proof of insurance in order to draw documents for closing. This whole process can be done in about a week.
STEP 6 – Getting your repair draws
If your loan includes repair funds then those funds will be held by the lender in an escrow account until you have completed and paid for the repairs. We will agree up front how many draws you will require. The amount of draws will depend on the size of the repair project. Minimum draw amount is usually $5,000. Once you have completed the first $5,000 in repairs you will need to submit a draw request. We will come out and inspect the property and the repairs completed. Assuming the repairs have been done and the proper lien waivers supplied, My Rehab Lender will advance to you the amount of your draw request less a $100 inspection fee.
Hard Money Vs Private Money
When speaking of hard money and private money people tend to get confused. The major confusion lies in the biggest similarity: both are asset based loans, based on the value of the property being purchased and not financial credentials of the borrower. The next biggest similarity is the disassociation from banks or national lenders.
Hard money lenders are licensed to loan money, whereas private lenders do not require any type of licensing. Private lenders include friends, family, professional referral, or business associates; anyone can be a private lender.
Hard money is much safer than a private loan since there must be lending criteria involved in hard money loans. These loans have various terms defined such as: duration, interest rate, and upfront points. These factors are defined and agreed upon before the money is issued and all hard money lenders are likely to use different terms to attract borrowers who have specific needs.
The downside (but possible upside) of private loans is there are fewer (if any) defined terms before the money is issued. The terms are usually up to negotiation and can, in theory, change as time progresses. The terms can be discussed to obtain more money, better interest rates, and sometimes simpler terms in general. This can lead to private money loans ending up as the cheaper option, but not always.
Hard money lenders usually utilize private sources for their funding, requiring a markup on the interest rates to make a profit whereas private loans, in a sense, are removing the third party and getting the money straight from the private source to the borrower.
One of the biggest bonuses to using hard money is the ease of access. Private money can be harder to find due to lack of advertising whereas hard money lenders focus on that business specifically. Since private lenders may only provide lending services on the side or when requested, it can be difficult to track down, meaning hard money loans will save borrowers time (and in a sense, money) by needing less searching and fewer hours spent negotiating.
If you’re seeking a private money loan, they are out there and can be an alternative to hard money loans when seeking real estate deals, but always keep in mind that companies like My Rehab Lender are here to help you with your funding needs. Our rates are reasonable and our service is quick and easy so you can get on with your life quicker.
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