A MODERN APPROACH TO PORTFOLIO LENDING
Hard Money Loans California and Nationwide
LENDING PARAMETERS
Lien Position:
First Trust Deed or First Mortgage
Loan Amounts:
$200,000 to $20,000,000
Region:
Nationwide, with a focus on California
Closing Time:
Typically 5 to 7 business days from application
Loan To Value:
Up to 60%
Loan to Completed Value:
Up to 60%, not to exceed 80% of the purchase price
Interest Rates:
9.0% – 12.0% fixed, interest-only
Pre-payment Penalty:
None
Loan Term:
6 to 18 months
Recourse:
Yes, for higher LTV transactions
Origination Fee:
1 to 5 points based on the location of the property, LTV, credit worthiness of the borrower, loan amount and term
Broker Fee:
If referred by a broker, all broker fees are determined before an LOI is issued and are paid out of escrow
Closing Costs:
Standard third-party costs, such as title and escrow
Deposits:
Typically required once final loan approval is given
Properties and Loan Types
Multifamily
Rehab/Significant Renovation
Office
Non-owner-occupied Single Family
Retail
Industrial
Hotels and Motels
Parking Lots/Structures
Condo Inventory
Vacation Homes and Rentals
Mobile Home Parks
Self-storage Facilities
Assisted Living Facilities
Primer Loan
Bridge Loan
Value-added Acquisitions
Recapitalizations and Partner Buyouts
Is Wilshire Quinn The Right Lender For You?
WHO DOES WILSHIRE QUINN LEND TO?
Investors looking to purchase rental properties
This group buys a property with the intention of renting it out, letting it appreciate over time, and/or selling it after prices increase. Typically these types of borrowers use our Fund as a short-term solution, or bridge, until they can refinance with a traditional bank at lower rates.
Investors Who Buy, Repair, and Immediately Resell Their Property
These investors, also known as “flippers,” often find the conventional lending world reluctant to finance their projects. The properties usually require renovation, and most conventional lenders are not interested in making loans on properties in need of major repair.
Builders
Builders obtain hard money loans because it’s quicker and easier than borrowing from traditional banks. The amount of money borrowed is more expensive; however, the lending process is faster, which sometimes outweighs the higher cost of
capital.
Borrowers Who Cannot Refinance With a Traditional Bank
In the current lending environment, borrowers often cannot qualify for a
traditional refinance on their real estate investment, even though in many cases
there is significant equity in the property. The following reasons may be factors:
*Credit score is below 720
*Insufficient or inconsistent income to qualify for a traditional loan
*Debt-to-income levels are too high
Business Owners Looking to Pull Cash Out of Existing Properties
Sometimes people have significant equity in properties they own; they may even own a property with no debt at all. Owners can pull cash out of their properties quickly with a loan from the Wilshire Quinn Income Fund, the proceeds of which can be used for business purposes.
