Private Lending for Real Estate Investments
Frequently Asked Questions
private money lending answers
Funding Questions
In the world of private lending for real estate, it's crucial to have a clear understanding of the processes, requirements, and terminology.
Our FAQ page is designed to provide you with comprehensive answers to common questions, while ensuring you have the knowledge and confidence to navigate the private lending landscape. With clear explanations and insight, our goal is to help you make informed decisions about your real estate financing options.
Speed and flexibility. At First Boston Capital Partners, we do not have approval committees that meet weekly. We do not require third party appraisals. We do not require lengthy application forms with months of bank statements and 2-3 years of tax returns. We are lending on the value of an asset, which we determine in house. We can close a loan in 1-2 weeks, and can accommodate situations that many banks can’t because we are real estate professionals first and foremost.
We finance a wide range of real estate projects including residential construction (new construction and gut rehabs), commercial properties, and land development. We also provide bridge financing, allowing you to close quickly even if you don’t plan to work with us for the construction of your project.
Interest rates and fees for private lending can vary depending on the specific property details, the borrower’s experience, the amount of leverage being requested and the risk profile of the project. Our loans are typically written for a 12-month term, but can range from 6-18 months depending on the business plan. Rates are typically between 11% and 13% with a 2% origination fee.
For a quick decision on your loan request, be prepared to provide an address and detailed description of the property (as-is and post-renovation), your total purchase price and construction budget, and your exit strategy including your opinion of the after-repair value of the property. For more information, please refer to our funding process for details.
We can close a loan in as little as 1-2 weeks. Once we confirm title is clear, we close the loan! Construction draws are funded within 24-hours of the request.
Absolutely! Some of our borrowers have anywhere from 5-10 projects going simultaneously. Each property is evaluated individually, and we can issue a term sheet for each property, or provide a blanket loan to cover multiple assets if that’s what your business plan calls for. When you complete your projects successfully, you position yourself for a more streamlined approval process because of your track record for successful execution.
Our loan terms typically include a minimum interest payment of 3-4 months for construction loans. Bridge loans may also come with this requirement, but this can be reduced or waived if we understand your business plan is to close and pay the loan off quickly.
We can provide a proof of funds letter, enabling you to make an all-cash offer for your next project. Reach out to a member of our lending team and we can tell you what is required to obtain a proof of funds letter.
Get Your Questions Answered To Finance Your Project
From eligibility criteria to repayment terms, we’ve got you covered with comprehensive information on our tailored financing solutions. Find solutions, gain clarity, and make informed decisions to kickstart your construction vision with confidence.
