We here at LBC Capital Fixed Income Fund welcome all types of real estate loans because we're able to identify a client's vision and correctly access the property value. Besides which, we offer an enticing ROI of 8%, which investors will find attractive.
As mentioned in the loan criteria section, there are several types of properties eligible for use in acquiring hard money loans. On that note, here are the types of property that qualify for a private mortgage fund.
- Apartments: By apartments, we mean a type of residential real estate or housing unit that's self-contained and lies within a part of a building. Such a structure may be referred to as an apartment house or an apartment building, particularly if it contains multiple rental apartments. These housing units can be rented by tenants or owned by an owner/occupier/landlord.
- Non-Owner Occupied Houses: As opposed to owner occupied houses, non-owner occupied houses have the tendency to have lower-risk credit characteristics that make borrowers perfectly eligible when it comes to hard money loans. It should have weaker incentives to maintain mortgage payments whenever housing values lower and have higher credit scores.
- Industrial Property: Industrial property, according to the Paris Convention for the Protection of Industrial Property, isn't only applicable to commerce and industry proper, but also covers extractive and agricultural industries and to all natural and manufactured products such as flour, flowers, beer, mineral waters, minerals, cattle, fruit, tobacco leaf, grain, and wines.
- Commercial Property: Also known as income or investment property, a commercial property refers to land or buildings made to become profitable either through rental income or capital gain. Examples of commercial property include multifamily housing buildings, residential property containing more than a certain number of units (in certain states), garages, warehouses, farmland, shopping centers, retail stores, etc.
- School Property: Incidentally, even school property can be eligible for use in a public mortgage fund as long as it's closed and it's assigned to the disposal process.
- Special Purpose Property: This is a property that's only appropriate for a limited or specific use. If it's a building that cannot be converted to another use without a large capital investment, then it's a special purpose property. For example, marinas, tennis clubs, golf courses, and carwashes are considered special-purpose property because of their inherent, "special purpose" nature.
- Church Property: Even church property or any surplus properties part of a church (building) or owned by a church (nonprofit organization) are eligible for use according to the policies dictated in acquiring hard money loans. From churchyards to church buildings, chapels to church grounds, they're all considered as church property.
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