Frequently Asked Questions
On many web pages, you will find FAQ’s that are not really frequently asked. In fact, some of the questions are never asked. Often, these are either the things the web site owner thinks are important or they are just filler.
Below, you will find a list of the questions we are most frequently asked and their answers. If you have any other questions, please don’t hesitate to contact us.
Q: How much will it cost me to get a private money loan?
A: This is going to depend mostly on the size of your loan. While we can’t actually give you an exact amount here, we can tell you that we are NOT the most expensive. Some private money lenders charge a minimum of 10 points. We would be happy to answer your questions on a specific loan scenario if you call or e-mail us.
Q: How long does it take to get a loan done?
A: Obviously, there are variations but it usually takes about 3 weeks from start to finish. In some instances, it is shorter and in some it is longer. It will depend partially on the complexity of the loan and partially on how quickly others respond to requests (e.g. appraisers, title companies, etc.).
Q: What rates do you charge?
A: The typical private money loan is going to be a significantly higher rate than a loan you would get from a bank. Unfortunately, we can’t give you an exact rate here for legal reasons but we would be happy to figure it out for you if you contact us with your specific situation.
Q: Do you do loans that are not secured by real estate?
A: No, we are only licensed to lend on properties located in California.
Q: What size loans can you do?
A: Generally, most of our loans are between $100,000 and $400,000 but we have done loans that are less than $100,000 and more than $400,000. There aren’t any specific loan amount restrictions. We do have investors who will consider loans larger than $2 Million. It really boils down to whether the loan makes sense for our investors.
Q: Do you do FHA loans or VA loans?
A: No, we only do private money loans.
Q: What is the highest loan-to-value ratio you will do?
A: Typically, the maximum loan-to-value ratio we will do is 65%. This means that if the property is worth $100,000, the maximum loan amount would be $65,000.