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Lending Criteria
This is a great short-term financing solution for investors looking to growth their business by purchasing and rehabbing properties, with the objective to sell or refirnance upon completion.
Although Fixing and flipping homes is a great source of income, sometimes it can be difficult to find the right lenders. In order to renovate a home and flip it for a profit, you need more than just capital, you need a team who can help throughout from start to finish. Capital Insider’s team can assist you to achieve your goals.
Brokers
Becoming a broker with Capital Insiders is simple. Just sign up, and start earning money today!
Capital insiders works with mortgage brokers, loan originators, realtors, attorneys, investors and other third parties in the real estate business. The platform affords our partners the ability to be compensated for brokering or referring business to us. Our streamlined lending process enables you to close deals quickly so, together, we can help your clients succeed and grow. We invite you to join us today.
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A hard money loan (also called Private Money Loan) is a short-term, interest-only loan that is secured by the value of the property, and it allows the purchase and repair of an investment property. Hard money loans do not conform to conventional underwriting standards and are not typically offered by banks or mortgage brokers. Real estate investors and developers commonly use these types of loans to fund their projects because they are easier and faster to obtain than traditional bank loans.
Real estate investors prefer hard money financing over traditional bank financing for a multitude of reasons. One main factor is the speed at which they can procure the financing. A quick closing with fewer contingencies on financing can be a powerful negotiating tool when purchasing investment real estate. These funds typically provide more borrowing leverage than traditional loans, allowing Fix-N-Flip loans, Bridge loans, Rehab/Construction, Rentals, and Cash-Out loans.
Another reason is that real estate investors typically make a higher return on investment with hard money loans due to the fact they can finance the repairs to the property as opposed to using their cash.
Banks can lend at much lower rates, but their criteria are much more stringent. Banks evaluate the borrower, as their primary qualification. Hard money lenders evaluate the investment property as our primary qualification, which allows us to move more quickly and requires much less documentation. Beyond that, we use the after-repaired value to evaluate your loan, something few banks will consider.
Another reason is that real estate investors typically make a higher return on investment with hard money loans due to the fact they can finance the repairs to the property as opposed to using their cash.
Banks can lend at much lower rates, but their criteria are much more stringent. Banks evaluate the borrower, as their primary qualification. Hard money lenders evaluate the investment property as our primary qualification, which allows us to move more quickly and requires much less documentation. Beyond that, we use the after-repaired value to evaluate your loan, something few banks will consider.
Not at all!, to the contrary, savvy/seasoned investors (even investors/developers with strong financial statements and access to bank credit ) frequently use hard money lenders more than traditional lending.
There are many transactions that just don’t fit the conventional lending system, for which hard money loans are better suited. Hard money is a preferred means of financing these transactions and allows real estate investors to leverage their cash to invest in multiple deals, instead of just one.
No. We only provide financing for investment properties. All of our loans are considered commercial loans meaning that they are for business purposes. We lend on rehab properties, rentals, etc., but they cannot be inhabited by the borrower. This means that the borrower cannot live on the property at any time during the course of the loan.
Yes, you can get a pre-approved letter for our hard money loans and rental financing.
For our Fix-N-Flip program, if you don’t have a credit score of 620 or above, then you will have to partner with someone and they will have to be included on the HUD and Note.
For the Rental programs, all individuals on the loan must have a minimum credit score of 660.
For the Rental programs, all individuals on the loan must have a minimum credit score of 660.
Yes. An appraisal is required for all loan programs. It protects Investors from making a mistake and owning a new mortgage on a property that is already underwater due to too many foreclosures in the area. Appraisals are the last step in the application and underwriting process. They are conducted only after the borrower is approved and the estimate of cost has been accepted by the borrower. Capital Insiders makes no money from the appraisals and the potential borrower pays our approved appraisers directly.
Yes, we do require our borrowers to have some cash at closing, pay interest over the course of the loan and be able to deal with cost overruns with the rehab project.
No, we only lend to business entities – LLC, LP, GP, Corporation, Trust, etc.
No, we lend up to 85% of purchase and up to 90% of rehab costs up to a maximum of 70% of after rehab value (ARV)
No, However, due diligence fees such as: inspections, appraisals, title search, etc., the borrower will be responsible for.
When determining your interest rate, we take several factors into account including property location, credit score, borrower experience and loan to value. We’re happy to provide all borrowers with their interest rate sheet so they know exactly why they are paying their respective rate. Currently, rates range from 8.99% to 13.99% for standard hard money loans, and 11.99% to 13.99% for construction loans.
Yes, but only to experienced contractors or builders.
Our borrowers request a draw. Within 48 hours, one of our licensed contractors inspects the work completed. Within 24 hours after the inspection report is received, the funds are released. There is a $250 charge for each draw that is deducted from the draw amount. We don’t make any money on construction draws. The cost of the draws goes directly to our contractors to ensure that the work is done properly and within code.
$75,000 – $1,500,000 (larger amounts are available on a case-by-case basis)
Submit the preliminary application online, which generally takes between 2-3 minutes to complete. Then, based on the information provided, we will get back to you within the same day to let you know if we can finance your deal. It’s that easy.
As in every area of lending, there will be individuals that do not conduct business ethically or with due diligence thus, giving all lenders, including traditional, non-traditional, and private money lenders, a bad reputation. Distinguishing between the lenders, means asking questions. Asking the proper questions is key. Do not let the stigma of a private money lender discourage you from seeking this type of financing. There are many private lending professionals that are well trained and ethical. Professionals with the buyer’s interest as their priority.
Choose a lender that is experienced with the type of loan that you’re are seeking. As a borrower, you should have a full understanding of the loan terms, and process. Also, verify the lending capacity of your lender to ensure your lender is capable of providing the necessary capital you are seeking. Make sure your lender has a reputation of integrity and honesty while conducting business. As a borrower, research lenders to obtain one that best fits your needs.
A Mortgage Pool or Mortgage Fund is an entity that invests in or makes private loans that are secured by real estate. The fund is capitalized by a group of private investors that each own a share of the pool (LLC). The Fund Manager selects appropriate investments and manages them, distributing dividends to the pool’s investors on a monthly/quarterly basis.
Real estate fund managers will diversify property investments, in terms of both location (perhaps spreading investments across downtown, mid-town, suburban, and rural areas of a region, or across multiple regions), as well as property types: Single Family Homes, Multi-Family, Office buildings, Warehouses, Retail, Land, and so on.
They do the groundwork of identifying property types that are most likely to increase in value, while hedging those bets by placing investments elsewhere.
While property values across the board may fall to some degree during market downturns, managers protect investments by lending through a diverse portfolio of properties on both, Residential and Commercial and throughout different geographical areas
They do the groundwork of identifying property types that are most likely to increase in value, while hedging those bets by placing investments elsewhere.
While property values across the board may fall to some degree during market downturns, managers protect investments by lending through a diverse portfolio of properties on both, Residential and Commercial and throughout different geographical areas
If done properly, private lending is one of the most conservative, consistent and safe investments around. The risk-reward scenario created by a properly structured Lending Fund product is second-to-none.
Capital Insiders offers a pooled mortgage income fund called Insiders Capital Fund, LLC (“ICF”). Investors can purchase Membership Units and become equity Members of the Fund. – For more information Click Here
CIF, LLC is managed by Insiders Capital Management LLC, which is a wholly-owned subsidiary of Capital Insiders. The principals of CIF manage the day-to-day activities of the Fund.
Note Insiders, LLC provides the loan servicing on all the loans for CIF, LLC. This includes collecting the payments each month from the borrowers and sending the payments out to the investors. All payments are deposited into and disbursed from a trust account.
Yes. IRAs, Self-directed IRAs, Roth IRAs and several other retirement accounts. Mortgage pool investing is a fantastic way to diversify your retirement portfolio and to leverage these types of accounts.
However, please contact your plan representative as all IRAs have different rules and regulations.
However, please contact your plan representative as all IRAs have different rules and regulations.
Yes. Investors have the option of taking monthly distributions or letting interest compound and grow.
A broker is a liaison between the borrower and the direct lender, and act as the middleman to provide funding to an investor. A broker typically does not have the ability to provide financing themselves, but, instead, has a business relationship with a sponsoring lender who then originates loans for their investments.
As a direct lender, we can offer an array of products to fit specific needs, and close deals for the borrower very quickly. Capital Insiders aims to close on time for the borrower, and typically does so within 7-10 days. We understand the importance of a fast-turnaround and respond quickly and accurately to all inquiries from our broker partners.
As a Broker with Capital Insiders, you grow YOUR lending business without the need to worry about looking for Investors to fund your deal, Raising Capital, Warehouse Lines, Capital Market Teams or Concentration Risk.
Become a Broker Insider Now! Get started here
As a Broker with Capital Insiders, you grow YOUR lending business without the need to worry about looking for Investors to fund your deal, Raising Capital, Warehouse Lines, Capital Market Teams or Concentration Risk.
Become a Broker Insider Now! Get started here
We protect our brokers by making sure that all fees that are disclosed up front on the commitment letter and memorialized in a transaction-specific agreement. Fees are paid off the HUD, with a check sent directly to the broker at closing.
All our loans are closed by third party escrow and you will be paid directly at closing. We ensure that all brokers that work with us are secured and communicate with all parties to make certain your fees are paid.
All our loans are closed by third party escrow and you will be paid directly at closing. We ensure that all brokers that work with us are secured and communicate with all parties to make certain your fees are paid.
Absolutely not. At all times, we work directly with YOU the broker, and facilitate all document flow through you so that you can present the terms, agreements and disclosures to your client as their agent. It is understood that the client belongs to you.
It’s simple. You can either complete our online loan submission form here, contact us by email or call us directly. We understand that our broker partners often find it helpful to talk through the loan scenario with us directly. We welcome the opportunity to discuss specific loan prospects with you because once we have a few questions answered, we can quickly determine feasibility.
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