Can I use free and clear property to secure funding?
Yes! It may be used as cross-collateral or used for a cash-out refinance. That is a great strategy! If you have properties that are completely paid for with no liens against them, we can do a cash-out refinance to provide funds for other non-owner occupied investments. You can also use them as cross-collateral for your real estate investing. We use both your subject property and your free and clear property as security for the loan. In doing that, we can lend up to 65% of the as-is combined value of the two properties. That is often enough to purchase your subject property and rehab it. If you have free and clear properties, mention that on your next deal!
Is my credit the deciding factor?
No. Our loans are asset-based. We base our loans on the value of the asset, not on your credit score, income, or the size of your debts. However, a high credit score can potentially get you our better rates.
Do I have to make payments during the time from purchase to sale?
Yes, interest only payments are required until property is sold.
How long does it take to close a transaction?
Though we can do it in 3-4 days, a good estimate would be three to four weeks after we receive the basic application package. The key factor is the amount of time it takes you and your team to supply all the supporting documentation. We can do our part in 3-4 days, but first-time borrowers rarely get us the documents quickly enough and complete enough to meet that. (Admittedly, sometimes other factors dictate closing time. If that’s the case, bring us the deal and let’s discuss it!)
*There are many questions you might have and we are ready to answer them. Why not call us with your deal now?