What a crazy year for private funding, hard money, commercial funding, equity funding, business funding, unsecured funding; all kinds of capital for investment purposes.
The climate of private lending has just changed because liquidity has greatly decreased, this has eliminated a lot of the competition.
This has resulted in more restrictive requirements for approval such as Fico Score and Experience minimums.
As a policy, lenders question why a successful businessperson is worthy of a loan risk of possibly a large loan but wouldn’t be able to pay even $1000 to repair and clean up their credit? they understand but aren’t exactly forgiving of past or recent economic events – they don’t want to hear it.
What mitigates your credit score IF you have a great explanation? (like a recent credit event within the past 2 months caused your score to swan-dive)
Having experience (recent experience) and most lenders may look the other way and consider you a better risk.
What if you don’t have recent experience and your score is not 650+?
Then you should be prepared to bring 15% down-payment, and it doesn’t necessarily need to be seasoned in your account or earned personally if you have a co-signor/personal guarantor, but it has to be documented..so have a statement to prove it exists.
What if You Have No Experience, and Have No Down-Payment, But Have Good Credit?
I’d suggest you apply for my unsecured-credit program to raise up to $250,000 unsecured credit lines/cards in 1-2 weeks to create a 100% financing scenario!
If You Are a Great Candidate
Lenders consider these metrics: having completed multiple flips and/or rental-purchase/acquisitions within the past 24 months, 650+ fico, and 3-6 months of interest reserves in your bank account, they will roll out the red carpet for you in most cases: 85%-90% LTC or 90% purchase, 100% of rehab, luxury spec builds/construction to $2M-$50M, commercial refinances with cash-out or purchase 75%-80%, even small loans from $50k.
Niche Loans: Gap Loans – These are 2nd TD loans that we make behind our 1st TD’s, never others. We will gap great candidates with lots of deal flow that have the experience, capital, average to good credit and the deal must be in an urban area and pencil at or under 65% of ARV (after-repaired-value) Lots of our lenders make loans nationwide.
Commercial Financing- 3yr/8yr/ fixed, special pricing this month! Hotel, Apartment, Industrial, Self Storage, Solar Projects, Multi-Family, Office, Warehouse, NNN properties, Shopping Center, Assisted Living, Residential portfolios, Construction Loans, Mobile home Parks, Resort properties. Bridge loans, SBA