Private Lending for residential real estate 1-4 units Trust Deed States only

[Swanee Heidberg]

Lending Criteria

Property Considerations

• Primarily 1 to 4 unit residential rehab and resale properties
• Will consider multi-unit properties if very secure deals
• Must be non-owner occupied
• Focus primarily in California but will consider other states
• Properties must be in active, desirable neighborhoods

Borrower Considerations

• Must be or use highly qualified, experienced contractor(s)
• Portfolio of successful projects highly desirable
• Borrower credit score will be evaluated but not key decision criteria

Loan Parameters Charged to Project

• 3 to 12 month terms
• 12% -15% annual interest
• Interest reserve built in for the term of the loan
• Generally 4 to 6 points
• Loan size of $50,000 to $2,000,000
• No prepayment penalty
• Up to 70% loan-to-after-repair-value
• Split Equity
• Can fund purchase and rehab with adequate collateral
• Possibly fund interest escrow, points and closing costs as well with adequate collateral and the ability to show skin-in-the-game by both parties

Deal Parameters

• Set up as borrower/lender relationship only
• Deal must be safe and profitable for both parties
• Both parties must show skin-in-the-game.  The following may qualify
  • Cross collateral of other NOO property, either by borrower or other
  • Additional personal Guarantor with adequate credit score and sufficient financials

 

Swanee Heidberg

Private Lender

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