Aside from managing features and benefits like private money loans, hard money loans, private mortgage pool, private mortgage fund, private financing, safe investment secured by real estate, and ROI 8% for investors, the managers and crew of LBC Capital Fixed Income Fund are also focused on the complete satisfaction of its clients, which includes investors and borrowers, with its well-established relationships with big lending institutions and its long experience in handling third-party negotiations with brokers of all types and realtors. With that said, here are the most frequently asked questions we have when it comes to realtors, realty funding, and real estate.
- What are the advantages of using a hard money loan in funding a real estate purchase? Aside from the aforementioned fact that we can act quicker than the average bank to close a loan, we are also collateral-based lenders who focus mostly on our lien's equity position, so we scrutinize borrowers less heavily. Even if a borrower has bad credit or cannot document income, we'll still consider these loans because you're only lending a small part of a real estate's value.
- What type of properties will we consider? As mentioned elsewhere in the site, LBC Capital Fixed Income Fund will consider the following properties for funding as well as eligible security for a loan: apartments, special purpose property, non-owner occupied houses (single-family residential), school property, industrial property, commercial property (retail/office), and church property. We will consider land loans for infill locations and coastal locations (under a lower loan-to-value structure).
- How does LBC mitigate risk when it comes to real estate investment funding? All of LBC's real estate investors have either a strength of equity or personal funds serving as their security and guarantee that the trust deed payment is prioritized. Furthermore, there's equity in the form of a brokered loan at 60% of the ARV or LTV, where the borrower’s personal cash flow or a rental cash flow that sufficiently pays the monthly mortgage.
- Is fire insurance required on the property? Yes. Not only does LBC require fire insurance on a given property; we also require the investor to tell the insurance company that the property is vacant. There should be coverage in the amount of the replacement guarantee or loan. LBC will also require flood insurance when applicable.
- Will there be a complete profile on the property delivered? We've already received an independent appraisal on the property before we present it as eligible for funding. A copy of the appraisal will be sent to the investor as well as the property address for the investor’s information. There's a lot of work required when it comes to qualifying a piece of real estate and borrower before the investment is proffered.
- What's the typical property LBC Capital Fixed Income Fund loans on? On average, we lend on Californian non-owner occupied homes that are vacant. We mainly concentrate on single family homes.
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