Everything to know about Private Money Loans
Most of our deals are funded with private money, exactly as it sounds. Money that is loaned out privately directly from an individual or entity. The person letting another person borrow the money is described as a “private lender” or “capital partner”. Bottom line, it is secured by the property and only liquid through the exit or refinance through the property.
Working with committed lenders makes it easier for us to move on a deal and get it closed or startup construction much quicker than it would take to process a traditional loan. We underwrite our own deals and send updates and emails for upcoming or new projects. You can pick which project you’d like to be apart of or see the process through.
Minimum Loan Amount: $25,000
What we use the money toward? Investing INTO the real estate!
- Buy vacant land
- Construction startup, materials, labor, foundation etc.
- Fix and Flip acquisitions or rehab
Projects in escrow funds can do directly to the Title Company.
How is the money safe? Is there any security?
We aim to be all in to our deals for less than 75% loan to value of resale price. Normal new construction deals we aim to be all-in for 65-70% loan to value in our specific market. This is achievable through the relationships with the contractors we work with. Your loan can be secured against the property, you are given a copy of a purchase money mortgage/mortgage deed and promissory note to outline to interest rate and terms. I am always available to answer questions on the project and we now incorporate a slack channel to provide weekly updates directly from the project management team.
If you are interested in learning the new construction process or being apart of a home transformation please fill out your name and info below!
What is a private lender?
We’d like to keep you updated on what we have working on. New ground up construction projects, new Multifamily opportunities or networking events coming up on Oahu or the Big Island.