At LBC Capital, we understand that securing a loan can be complex and overwhelming. Our goal is to simplify the process and make it as transparent and stress-free as possible. To help you navigate, we’ve compiled a comprehensive list of frequently asked questions and common concerns from our clients, providing clarity on our lending process.
Our team of experienced professionals is always available to offer personalized assistance and guidance throughout your loan application journey. Don’t hesitate to contact us for any support or clarification you may need.
LBC Capital is renowned for our expertise in providing flexible and swift funding solutions, especially through hard money loans. These loans are highly favored by real estate investors who need rapid financing and a more adaptable approach compared to traditional banks. Hard money loans address the specific needs of investors by offering quicker approval processes and more lenient criteria, making them an ideal option for those seeking immediate financial support in the fast-paced real estate market.
We understand that every client's situation is unique
We pride ourselves on offering personalized loan solutions tailored to meet their specific needs. Our commitment to transparency, flexibility, and excellent customer service has made us a trusted lending partner for real estate investors and brokers alike.
Please browse our FAQs below to learn more about our lending process and how we can help you achieve your real estate investment goals. If you have any additional questions or concerns, please do not hesitate to contact our team directly.
1. What constitutes a hard money loan, and how does it contrast with a conventional loan?
A hard money loan is a real estate-backed loan that uses private funds and generally has a shorter duration and higher interest rates than traditional loans. At FastPrivateFunds, we manage our own pool of investors’ funds, enabling us to make quick decisions and provide financing within days.
2. What types of properties can be financed with hard money loans?
Hard money loans are typically used for investment properties such as fix-and-flip projects, rental properties, or commercial real estate. Eligible properties include single-family homes, multi-family units, office buildings, retail spaces, hotels, and industrial properties.
3. What is the maximum amount I can borrow through a hard money loan?
The loan amount you can secure with a hard money loan depends on the value of the property being used as collateral. Lenders usually offer up to 70% of the property’s value, although some may provide higher or lower loan-to-value ratios based on the property’s worth and the borrower’s credit profile.
4. What are the standard terms for a hard money loan?
Hard money loans typically have terms ranging from six to 24 months, though some lenders might offer terms up to 36 months. Interest rates can vary between 7% to 16% or higher, and a balloon payment might be required at the end of the loan term.
5. How do I apply for a hard money loan?
The application process begins with completing a loan application and submitting necessary documents, such as a credit report, property income details, title report, and property valuation. Our underwriting department then reviews the documentation and advises our loan committee for the final decision.
6. Can I refinance my existing mortgage with a hard money loan?
Yes, some lenders provide hard money refinance loans that let you refinance your current mortgage using the equity in your property. These loans often have higher interest rates than conventional refinance loans and might take longer to process.
7. What are the consequences if I fail to repay a hard money loan?
If you fail to meet the obligations of a hard money loan, you could face state-specific default and foreclosure procedures related to the property’s location. It’s crucial to carefully assess these risks and establish a robust exit plan when securing a hard money loan. We’re available to assist you with both aspects.
8. How fast can I get funded with a hard money loan?
Hard money loans can be funded much quicker than traditional loans, often within a few days or weeks. Our streamlined application and approval process, along with in-house underwriting and processing, contribute to the speedier funding.
9. What benefits come with utilizing a hard money loan?
Benefits of hard money loans include quick access to capital, flexibility in loan use for different property types, potential for higher returns on investment properties, raising equity, and increasing liquidity.
10. What key qualities should I seek in a hard money lender?
When choosing a hard money lender, look for one with a solid reputation, competitive interest rates and fees, and experience in lending for your specific property type. Avoid lenders with too-good-to-be-true offers; instead, select one with a proven track record and clear terms. Understand the loan terms thoroughly and ask any questions before signing.
Get a consultation with our experts
Get a personalized consultation with our experts to explore the best financing options for your real estate needs. Our experienced professionals will take the time to understand your specific goals and financial situation, providing tailored advice and solutions. Whether you’re a first-time investor or looking to expand your portfolio, our team will guide you through every step of the process, ensuring you make informed decisions and secure the best possible terms. Reach out today to schedule a no-obligation consultation and take the first step towards achieving your investment objectives.
Fast and flexible financing for your real estate investment projects in Illinios
Explore agile and flexible financing solutions tailored for your Illinios real estate endeavors with LBC Capital. Our comprehensive range of hard money loans, backed by property, includes options like fix and flip loans, bridge loans, and construction loans. Our dedicated team of experts will carefully evaluate your needs and expertly navigate you through the entire loan process. Enhance your real estate journey by contacting us today and opening the door to personalized financial success.