Frequently Asked Questions

Where do you lend?

We are based in St. George, Utah. However we are currently lending throughout the state of Utah.

Who do you lend to?

We lend to real estate investors and builders. We are not a mortgage company, we do not provide funding for owner-occupied residences.

How quickly can you fund a loan?

Once we receive all the necessary information from you, our underwriting process can be completed in just a few days.  After a funding commitment has been issued, closing on the loan is dependent on of the speed of your title company. It’s possible to complete the process in as little as a week.

Are you a direct lender or a broker?

We are a direct lender, which means you can expect to work directly with the team funding your loan.

What is a Hard Money loan?

A Hard money loan (also referred to as private lending or a bridge loan) is a loan in which a private lender (non-bank) issues funds based on the value of real property as collateral.  

Hard money loans offer a way for borrowers to raise money quickly and avoid the lengthy approval process required by a bank. They are typically short term in nature, 6 months with an option for renewal. They are an excellent solution when bridging to long term financing or a quick exit.

Why is it called “Hard Money”?

The term “hard money” refers to the hard, tangible asset being used as collateral for the loan.  In our context, the hard asset is real estate.  The irony is that hard money is EASIER and faster to obtain than a traditional loan from a bank. The loan process itself is not hard.

Do you lend to first-time real estate investors?

Yes. While we take your experience level as an investor into account during the underwriting process, it alone will not prevent your project from getting funded.

Do you collect any money prior to closing on the property?

It’s atypical for lender fees to be required prior to funding. However, there may be third party fees required, which would include paying a service provider directly. For example, if a property has some visible foundational damage, we would require a professional inspection in order to verify the rehab budget has properly accounted for such a repair and the plan for resolving the issue is sufficient.

If a lender is charging fees prior to funding, this is often a red flag of a scam.

Do you require an appraisal?

The majority of the time we rely on a Broker Price Opinion (BPO) and other comparison sales data. This allows us to fund quickly as we’re not at the mercy of the schedule of an appraiser.

If the borrower is a corporate entity, do you require a personal guarantee?

Yes, in this sense we operate the same as a traditional lender. All of our loans require a personal guarantee.

Can I choose which title company to work with?

Yes, we are happy to work with a title company of your choosing, or recommend one to you.

Will you run a credit report?

No, we are an asset-based lender and our primary concern is underwriting the value of the property.

Will loan payments appear on my credit report?

No

Do you lend on owner-occupied properties?

Sorry, not at this time.

Can I cross-collateralize another property to improve my LTV?

Yes. If you own another property free and clear, we can often cross-collateralize and use it to improve the amount of funding we can provide. For example, you’re looking for a loan of $250,000 on a property that is valued at the same amount. By itself, this would be a 100% Loan to Value (LTV) scenario. However, you own a separate parcel of land free and clear valued at $100,000. Combined, your adjusted LTV is 71% and allow us to fully fund the purchase of the property for $250,000.

How can I increase the likelihood of getting funding for my project approved?

A borrower who is prepared and organized, allows us to get comfortable with their project faster. A prepared borrower has assembled all the necessary documents and information such as a REPC (Real Estate Purchase Contract), a rehab budget (if required), photos, a concise plan for the project, and sales comparison data to support their numbers.

We are looking for win/win transactions on legit deals. If you have a solid project with all your information organized and ready for our review, we’re going to be able to quickly recognize its potential. 

Do I need an exit strategy?

Yes, an exit strategy, or a plan for repaying your loan, is essential to getting your loan approved.