A Bridge Loan With No Upfront Fees!
If you are looking for a reliable source of capital that can help you close a loan in as little as two days, then please read further.
We have access to a privately-owned equity program that is designed for anyone needing a fast closing and they have credit issues. Loans will usually fund in 2 days once a full package has been received. Our bridge and medium term loan starts at $100,000 and caps at $1,500,000.00. Our loan program will have a maximum loan to value of 50% and payments are interest only for the duration of the loan, with principal being due at maturity.
- Bridge Loan #1 is offered for one year or less at 18% and 6 to 8 points with no prepayment penalty.
- Bridge Loan #2 is offered for up to five years at 18% and 6 to 8 points with a first year prepayment penalty starting at 12% and decreasing by 2% every two months.
Our bridge loans will fund purchases, refinances, credit lines, construction, renovations, project completion and paying off other bridge loans. Most property types will qualify to include: multi-family, single-family, condo and co-op, mixed use, office, warehouse, retail, convenience store, light industrial, gas stations and special purpose properties. This program will lend to individuals, corporations, LLC’s, trusts and estates.
Properties located in the following areas will only be considered for this program.
Delaware, Maryland, District of Columbia, Virginia, North Carolina, South Carolina, Georgia and Florida.
Our lending process is simple:
- No seasoning requirements
- No upfront or commitment fees
- Summary appraisal required and you pay the appraiser directly
- Minimum credit score of 400
- Little or no documentation required
- All loans must be for business or investment purposes only
Wiseman Capital Group is changing the way hard money loans are done. If you have loan hard money loan request please submit (Executive Summary, 1003, credit report (if available), pictures of the subject property to info@wisemancapitalgroup.com .
Private Lending Works
With the growing scarcity of institutional funds, finding the best financing option for hard-to-place commercial loans is becoming increasingly difficult.
As a result, hard-money loans from private lenders are becoming a principal source of capital. This type of funding can help with collateral gaps, credit gaps or working-capital needs without involving traditional lending institutions. Hard-money loans also let commercial property-owners leverage assets to complete a project quickly, buying time to secure long-term funding from traditional lenders.
By partnering with private, hard-money-lending institutions, commercial brokers can increase their earnings while eliminating the stress associated with finding capital.
How they work
Private-lending institutions are often backed by investor mortgage pools. The funds from these mortgage pools can provide brokers a reliable capital base for hard-money loans.
Similar to a mutual fund, a mortgage pool or mortgage fund is composed of a number of diverse trust-deed loans. Investors purchase shares of the pool, and the pool manager acts as a broker to the fund, directing investor money to borrowers.
Hard-money loans are typically asset-based, and they have a short time frame for closing. Their flexible repayment plans also make them ideal for bridge loans on real estate that is in transition and does not yet qualify for traditional financing. Transitional properties often are under construction, need rehabilitation or exist unrented in areas that take longer to lease up.
The primary source of loan repayment is from the sale or later refinance of the property after improvements. Traditional lenders often are unwilling to make loans of this nature. But a mortgage-pool manager working closely with the borrower can find solutions.
Pool managers often focus on the property, its loan-to-value ratio and the borrowers’ exit strategy. Borrowers’ credit capacity is secondary.
Further, pool managers control the underwriting and servicing process, make their own credit decisions and have loan-approval authority. This process can accelerate funding to meet close deadlines. Although these loans often come at a high price, they can be advantageous when compared to the long-term costs of a traditional refinance.
When it comes to negotiating loan terms and conditions, pool managers follow different guidelines than traditional lenders. They can tailor terms and loan structures to meet borrowers’ circumstances — from partner buyouts to construction takeouts.
When they work
Sliding real estate prices and increasing interest rates have resulted in an increase in loan requests for opportunistic purchases. Here’s an example of when a hard-money loan might be appropriate.
Consider a client with a $900,000 first mortgage at 5.9-percent interest on an income-producing property in California. The client wants a second property at $600,000 but needs to move quickly to nab it.
One option would be to go through a traditional lender to refinance the first property to, for example, a $1.3 million loan with a 30-year term. After paying points, closing costs and other fees, however, the property-owner would be left with less than $400,000 — not enough to purchase the second property without a large downpayment.
A private-lending institution could work out a loan for the amount necessary, albeit with a short term and higher interest rates. With the hard-money second, the loan could be paid off with no prepayment penalty when the property sells — potentially a cheaper solution for the borrower.
