M.R. Qualified
- Ability to close as fast as few days (or faster)
- Title work is usually the limiting factor
- Lending Flexibility
- Creative terms – able to solve for unique borrower and deal needs
- Less money down (situation and borrower specific)
- Streamlined process: Focus on only the most important underwriting criteria / risk points for any borrower
- High emphasis on client service
- Calls, texts and emails are returned promptly
- Performance
- Lender is also an experienced real estate investor; able to serve as a sounding board pre- and post-closing
- Credit committee of one person (Matthew Rodrigue)
Typical Borrower Profile
- Typical LTV of 80%
- Willing to flex higher in certain situations or for repeat clients
- Higher LTV may affect loan pricing
- Real estate entrepreneur
- Fix, flips, brrrrs
- Cares about reputation and character. Motivated to repay
- Good credit score
- Clean criminal background check
- Some real estate investing experience
- Desires capital to grow his or her business faster
- In need of short-term financing (loan term of 2 to 18 months) to bridge to a longer-term bank refinancing or sale
Typical Loan Terms
- Initial interest rate of ~11%
- Periodic interest rate step-ups
- 2.5% to 4.0% total loan fees
- 6- to 18-month maturity
- Corporate borrower (i.e., LLC) with a joint and several guarantee of key owners / members
- Investment properties only, no personal residences
- Minimal legal expense (template documents on hand for Maine, Virginia, North Carolina)
- Typical loan size of $100k to $500k
- Ability to do larger loans
- Will do smaller loans for relationship borrowers
- Usually first lien; always covered by title insurance
