FAQ

/FAQ
FAQ2018-09-12T22:05:56-04:00

Let HCF answer your hard money questions

What is Hard Money Collateral?2018-09-12T21:59:39-04:00

The collateral is typically the real estate loaned on. At times it can include other assets of
the individual or business borrowing the hard money. In many cases a hard money lender
will offer a smaller loan size based upon a lower “Loan To Value Ratio”. This means they
may opt to loan no more than 65% of the property value. Therefore it is common for real
estate investors to offer additional real estate as collateral in order to obtain a larger loan
amount. This is known as cross-collateralization.

What is ARV or After Repair Value?2018-09-12T21:59:35-04:00

The after repair value refers to the appraised value of the property after all repairs that
you have outlined are completed. This represents market value for the property.

Our Two Cents: The ARV is still a moving target and is exactly why we love working with
local Realtors who understand the nuances of a market. Schools, topography, and a
myriad of other situations can affect value. Secure a relationship with a great Realtor who
understands investors’ formulas and can help build your network. Need some
recommendations for your area. Contact us.

Do you lend to foreign investors?2018-09-12T21:57:45-04:00

Yes! Talk to us about your fix and flip and rental goals.

Our Two Cents: Make sure that you not only have your US based company set up but
that you also have great tax and accounting professionals that understand the tax and
currency challenges and can help you prepare a strategy for numbers on your purchase
and exit. We are happy to connect you; shoot us a message.

Do you always require an appraisal?2018-09-19T21:03:34-04:00

It is imperative that you are in an investment that does not turn into a costly mistake.
Although this is an expense for the borrower, it ensures that you maximize the
determined value and by virtue of that, your profit range. We do not make any money
off of appraisers – they are paid to do their job.

Our Two Cents: With an appraisal, you are protected from being underwater on a
property that is surrounding my foreclosures and it serves as another confirmation of how
you can price it in the traditional market after the home is completed. Want to have the
initial value double checked? You can order a CDNA report on this link. https://bit.ly/2xqf3cV

How fast can a Hard Money Loan be Repaid?2018-09-12T21:56:41-04:00

As fast as you want. There is no prepayment penalty so when you sell that home you just
renovated, you can move on down the road to the next one and we look forward to being
your partner.

Our Two Cents: Don’t tell us you need 3 months to be in and out of a property. If you are
a novice investor, count on learning through trial and error. We will help you minimize
the errors but inevitably, things happen. We always say challenge yourself for the shorter
time period and if you make it, consider it a bonus.

LTV or Loan to Value Ratio:2018-09-12T22:00:02-04:00

Describing the size of a loan compared to the value of the property securing the loan,
every lender has different guidelines for this percentage as they use LTV’s to determine
the risk of a loan. The LTV ratio is calculated as the amount of your mortgage lien divided
by the appraised value of the property. This is always expressed as a percentage so you
will see 65% LTV, 70% LTV, etc.

Our Two Cents: If you have not completed any deals and want $300,000 – guess what –
your going to have a lower LTV because you my friend, are risky. But it’s all good because
based on the VALUE of the asset that number could still have you coming with a minimal
amount down.

What is Cross-Collateralization?2018-09-12T21:58:13-04:00

Using an owned asset, the term refers to the act of using that asset as collateral for a loan.
If the debtor became unable to make the schedule payments, the affected lenders have
the power to force liquidation of asset with use of the proceeds as repayment.

Our Two Cents: We have been helping do this for over 10 years. Trust us to get your a
higher LTV using the minimal amount of assets to get this done.

What is a bridge loan?2018-09-12T21:57:49-04:00

A bridge loan is a great tool for short term needs and is a type of short term loan. By
“short”, that term can refer to as little as 2 weeks to an extended period of 3 years to help
someone prepare and secure long term financing. Like a hard money loan, bridge loans
have a higher interest rate and can be arranged with similar quick timelines with minimal
documentation.

Our Two Cents: If you are looking at wholesaling, checking a commercial opportunity or
thinking about expanding a development, call or message us to discuss your bridge loan
options.

Do you lend on commercial properties?2018-09-12T21:57:15-04:00

Yes, we do! In addition to non owner-occupied residential real estate, we handle multi
family of 5+ units and commercial acquisitions.

Our Two Cents: Have some residential properties you are selling? Grab the proceeds,
put them in a 1031 exchange and let’s upgrade to some commercial properties

Can I write my offer as a cash offer?2018-09-19T21:01:37-04:00

Cash? Consider us the equivalent. Once you lay eyes on a property to invest in, you have
to get it under contract fast and it is hard to compete with all cash offers. But now, you
can.

Our Two Cents: In addition to your POF letter from us, make sure you have already gone
in with your contractor with a firm estimate and are willing to do 0 days due diligence to
get the deal done. No one wants to mess with a due diligence period (if your state has
one) if there are 11 other offers on the table. Order your POF letter here. https://bit.ly/2QAHKwB

See what people say about us!

I have been doing business with Hebron Capital Fund for about 4 years and will have to say they are the best, most reliable lender in the Atlanta area.

Rose Watson, Atlanta, GA

What sets Hebron Capital Fund. apart from other hard money lenders, is their ability to speak to our client’s with us on the telephone, get the correct forms and directions in a timely manner and walk us through what we do not understand.  They are there for us when we need added product support to get a deal closed, this is very valuable part of what they do.

Edward Coleman, New York

You guys are true professionals in the industry. The loan process was quick and painless. My loan was funded with better rates then what I expected. I definitely will use you on my next deal.

John Smith

I have used Hebron personally and would highly recommend them! Being local makes a huge difference and no long wait times on draws! When you have a closing, you can be sure the funds will be there.

Frank Iglesias, Los Angeles

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770.239.2776