I have a low credit score. Can I get a hard money loan?
This will depend on the loan you request.  For instance, if you have found a great deal on a property from a distressed seller, and you intend to merely "flip" the property, then all you need is short term capital to carry you until you re-sell the property, and credit scores are not that relevant.  If however, you intend to rehab the property and carry it as a rental, then you will be forced at some point to refinance the hard money loan.  In such a case, the Investor will take a closer look at your credit to determine why your scores are low.  In some circumstances, the hard money Investor may reduce the amount of the loan or require you to put up additional collateral.

How quickly can I get a loan?
One of the greatest things about a Alternative or Equity Based loan is the speed at which you can get one.  Assuming all your paperwork is in order, approvals can be granted in as little as 24-48 hours, and settlements can often take place in a 2 weeks, but not always.  Remember that the investor will often have to make an appraisal of the property, order and inspect title work, and have lender documents drafted.  This could take anywhere from days to weeks depending on the circumstances but, in an emergency situation such as foreclosure, most of Alta' Investors can expedite this process to accommodate a borrower.

Can I get a pre-approval letter?
Yes.  If your real estate transaction requires a lending pre-approval letter, Alta-can provide that to you, most of the time in the same day it is requested.

What are the fees?
You will generally have to pay 4-10 points.  One point equals 1% of the loan amount.  Some or all of these points may have to be payed up-front, by upfront we mean they will be paid at closing.  You will also certainly have to pay for an appraisal of the property, some document preparation fees, underwriting and application fees.  Each investor is different and, when you apply for the loan, on most deals, the upfront fee is limited to $500 to $1500, at commitment of the loan there could be fees due as well, based on the investor bur we tell our clients to expect $3000-$5000 depending on the deal. 

Are there fees upfront?
Some fees are payed up-front, depending on the investor. Alta- Financial Innovations charges a application fee of $495.  The application fee is due when you want us to submit to our investor for final approval and is refunded in the event a LOI is not issued by the final investor. These fees are disclosed on our COnsulting agreement.

When is a hard money loan not appropriate?
Hard money removes much of the red tape from the lending process, but it is not appropriate in some circumstances:

1. When you need money for "long term."  Many hard money deals are for no more than 6 months to 3 years;
2. When the deal is "tight."  Don't look for hard money loans higher than 60-70% of the property value, if that.  Our investors aren't interested in losing money, and the only way to try to insure that is to lend based upon very conservative loan-to-value ratios.  

I am days away from foreclosure. Can you help? Can I get a loan?
MAYBE  Hard money loans can happen very quickly, so depending on how soon your upcoming foreclosure.  There still may be many options available to you to stop the foreclosure proceeding.  If you contact us, we will try to help you find a solution.  Whatever you do, do not allow your property to go to foreclosure without reviewing all your options with a real estate attorney or consultant experienced in these matters.

What are the loan terms?
Every hard money investor has different lending criteria as well as different point structures and interest rates.  As a general rule, count on an interest rate anywhere from 10-18%, and you will probably have to pay anywhere from 4-10 points.  We have come to find that each hard money deal is unique and it is impossible to provide exact numbers until the deal is reviewed and approved by an investor.

Does the lender take the deed to my property?
Absolutely not!  Aside from some of the legalities involved with that, Our Investors are not interested in owning your home or property, only receiving a higher than average interest rate return on their money.  If you are in distress or foreclosure and need to sell your property, we may be able to help you find a qualified buyer to settle with you quickly.  Otherwise, contact a real estate agent, Alta- Financial Innovation has real estate agents on staff you are more than welcome to contact them with your questions 866-928-5770.  Always seek competent legal advice before deeding your property over to anybody.

Are there pre-payment penalties?
Sometimes yes, sometimes no.  This will depend on the individual investor and your needs.  Some hard money Investors will give you a slightly better (as in lower) interest rate if you agree to a pre-payment penalty, as this gives the Investor some assurances of a good interest rate return for a guaranteed period of time.

Can I get cash-out to pay tax liens, judgments or other debt?
Judgments and liens that appear on your title MUST be paid off at closing but, after payment of these items, you may use any additional equity in your property to get cash at closing up to the lenders "loan-to-value" limits.
For instance, if you have a property valued at $100,000.00, and owe $30,000.00 in tax liens, and the Investor allows you to borrow up to 60% of the value of your property, then you will be able to take an additional $30,000.00 at closing for your own use, less any applicable closing costs and lender fees.

Do you allow secondary financing or seller-held notes?
Sometime yes, sometimes no - please call about your situation.

Do you check the title? Are there title fees?
As with a conventional loan, every hard money lender will require you to pay for a title search of the property to make certain that you have proper title to the property and the lender is being put in proper first lien position.  You will also have to pay for the title/escrow company to close your loan, record a mortgage or deed of trust in the land records, and issue lender's title insurance to protect the lender's interest in the property.

Is there a limit to the number of properties I can buy?
No.  Each deal stands on its own.  If it makes sense to the Alta- Financial Innovations Hard Money Investor, you will get the loan regardless of how many properties you own.

Do I need an appraisal?
It depends on the Investors ability to access the property and knowledge of the local real estate market.  In most cases where the investor is lending far from its local area, an appraisal will be required. 

Where do you lend?
Nationwide subject to licensing requirements being meet in the state where loan is requested.  Most states have little or no licensing requirements for a commercial loan, but on the other hand most do have requirements for residential.  To see if we will lend on your project please call Alta- Financial Innovations 866-928-5770.

Do I need to provide personal income statements?
No, but if there are any rent rolls or documents related to the property which is the subject of the loan, you will have to provide those.  The we will also need to have a copy of the real estate contract.

What type of properties do you fund on?
If it is real estate, we will look at it. 

Are the loans fully amortizing?
It depends on the circumstances.  Many of the commercial/investment deals are interest only, while many of the foreclosure/bankruptcy bailouts or primary residence loans are fully amortizing.

Do you lend on purchase price or appraised value?
Each investor is differant, but Alta- Financial Innovations does have investors will lend on appraised value.  Thus, if you purchase a property far under its value, the lender may lend you up to 900% of the purchase price.  You will, however, always have to pay closing costs.

Can I roll closing costs into the loan?
Some of the our investors will allow you to roll points into the loan (subject to max LTV).  However, most other title and lender fees, or other closing costs, will have to be paid by you at closing. each deal stands on its own, so call for more information.