Direct private lending occurs when a private individual or company (not a bank) provides real estate investment financing to a borrower with the loan being secured against the real estate.

Real estate investment loans from private lenders are usually offered to borrowers without all the extensive qualifications that are required from banks or credit unions. You receive funding to buy a property, refinance a property, or to make home improvements; then, you pay the amount you borrowed back in installments with interest either through amortization and or a balloon payment.

No, it is a direct hard money real estate lender.

No. Endeavor Capital PR only lends to investors on investment property. Endeavor Capital PR does not lend to owner occupied properties.

Speed. Many sellers of properties do not want to wait several months to close using conventional loans. Endeavor Capital PR can close with fast financing in as little as 14 days. By using Endeavor Capital PR, the investor bypasses many of the hurdles of dealing with bank requirements.

Flexibility. Endeavor Capital PR is much more flexible in structuring property loans.

Yes

Residential, commercial, and industrial properties can be financed with a hard money loan - Purchase loans, construction loans, short- and intermediate-term loans, second mortgages, fix and flip, real estate notes

Multi- and single-family, residential, commercial, retirement facilities, vacation rentals, pharmaceutical plants

Hard money lenders have different requirements than banks do for the due diligence process. In general, origination of commercial loans will start with very basic information such as the address, deal structure, and proposed exit strategy. Once ECPR understands the Investor’s strategy, the remaining underwriting will take place.

While most hard money loans are backed by real estate property as collateral, some bridge loans are not. The most notable exceptions exist when a hard money loan is backed by another loan from a third-party institution.

A bridge loan is a short-term loan used to bridge the gap between buying an investment home and selling your previous investment home.

An acquisition loan is used to purchase a specific real estate asset.

It is possible for borrowers to secure a 2nd mortgage hard money loan. However, this will be approved by exception only and the underwriting on a second mortgage is very conservative.

Mezzanine financing is a combination of debt and equity finance, most commonly used in the expansion of established companies rather than as start-up or early-phase financing. They are generally made available for short periods.

Any borrower who buys a property that needs repairs.

The company was formed in May 2017.

Hard money loans are typically funded by private investors, have higher interest rates, and have a shorter repayment period compared to traditional mortgages.

Real estate investors, house flippers, and individuals who cannot qualify for traditional loans often use hard money loans

LTV ratio represents the loan amount as a percentage of the property's value. In hard money lending, a lower LTV ratio reduces the lender's risk

Interest rates for hard money loans can vary widely but often range from 12% to 15%, or even higher, depending on the lender and the borrower's risk profile

Borrower's creditworthiness, loan amount, LTV, property type, condition of the property, and local market conditions can influence hard money loan interest rates

Hard money loans usually have terms ranging from 6 months to a few years, but the average term is around 1-2 years

Fees can include origination fees, underwriting fees, and early repayment fees. These vary by lender and loan terms

Approval for a hard money loan can happen within a few days to a couple of weeks, depending on the complexity of the deal and the lender's processes

The approval process involves application, property evaluation, and approval based on the property's value and the borrower's ability to repay

Yes, hard money lenders are more concerned about the property's value than the borrower's credit score, so individuals with bad credit can often still secure a hard money loan

There is no strict minimum credit score requirement, as hard money lenders focus on the property's value and the deal's potential profitability

The loan amount is typically determined by the property's appraised value and the loan-to-value ratio set by the lender

Yes, hard money loans are often used to purchase properties in poor condition, renovate them, and then sell for a profit (fix-and-flip projects)

LTC ratio represents the loan amount as a percentage of the total project cost, including acquisition, renovation, and other expenses

Prepayment penalties vary by lender, so it's essential to read the loan agreement. Some loans have prepayment penalties, while others do not

Down payment requirements vary but often range from 10% to 30% of the property's purchase price

Once approved, funds from a hard money loan can be disbursed within a few days to a week, providing a quick financing solution.

If you default on a hard money loan, the lender may take possession of the property used as collateral to recover their investment

Loan amounts can vary widely, ranging from a fifty thousand dollars to several million dollars, depending on the lender and the property's value

Yes, it is possible to refinance a hard money loan with a traditional mortgage once you meet the eligibility criteria of traditional lenders

Required documents often include a Government-issued ID, loan application, property appraisal, proof of income, and information about the property and an exit plan

Hard money loans are generally not regulated by government agencies, so borrowers need to be cautious and conduct due diligence when choosing a lender

Kurt Stenhouse, Principal, has been in the real estate business for 33 years and in the lending business for 22 years. He has purchased, developed, underwritten, and lent over a billion dollars in real estate. He has 25 years’ experience in Puerto Rico.

In addition to Kurt’s real estate expertise in Puerto Rico, his extensive knowledge also spans throughout New England, New York, and Florida. Kurt graduated from Bentley University with degrees in Finance, Computer Science, and Accounting.

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