Find out the answers to this question as well as the many other Frequently Asked Questions we receive from prospective clients.
What is a Hard Money Loan?
Hard money (also known as a rehab loan or bridge loan) is the term used for loans funded by private parties who want a safe and high return. Lantzman Lending is a mortgage loan originator who arranges loans for private investors. We work directly with property buying investors who use these funds to purchase properties with the intent to fix and sell them for a profit or stabilize and refinance with conventional financing. Real estate investors use hard money when they are unable to or do not have time to obtain financing from more conventional sources. There are many types of hard money loans. Lantzman Lending specializes in first trust deeds to investors who purchase residential and commercial property.
What is Lantzman Lending Looking for When Considering My Application?
We will primarily review the collateral to the loan. The strength of the deal is the main determining factor in the loan underwriting. However, we also review your ability to repay, credit-to-debt ratio, cash reserves, and your experience level.
Are Most Private Investors/Hard Money Lenders Trying to Foreclose on Your Home to Get the Money?
No. Private investors / hard money lenders simply want a good return on their investment but they will protect themselves from losing the investment by using the equity in the property. This is a common misconception, private investors / hard money lenders just want the payments made on time but if the borrower is having difficulty they will insure that it will not be a long term problem.
Are you a Direct Lender?
Yes, we are a direct lender, which simply means that the money we fund our loans with is our own and is readily available. Some lenders have to raise money to fund their loans or have to go out and find a direct lender to fund their loans because they don’t have the money to fund the loans themselves.
What States Do You Fund in?
We provide hard money loans in California, Nevada, Arizona and Texas. Loans made or arranged in California must be represented by a Mortgage Broker qualified to do business in that State.
Do I Need to Provide All My Documentation Regarding Income, Bills, Etc.?
This is dependent from investor to investor but typically you will only need to provide minimum documentation to obtain the loan. The vast majority of our borrowers are only required to fill out our one page application and supply a recent credit report.
Do You Fund Auction Purchases?
Yes we do! It’s best to submit a loan application before you go to the auction to make sure your thought process for determining property value is in line with Lantzman Lending’s and that you have a pre-approval letter in hand. Auctions such as REDC, Auction.com, and Williams & Williams should not be confused with the trustee sale. Every auction company is a little different, and you will need to find out what each individual auction company requires. Requirements and procedures, including deposits, working with Brokers/Realtors, and percentage at closing, can change from auction to auction and even within the same company. Always read the website or auction catalog before attending. Most auctions will require a deposit in the form of a cashier’s check ($2,500-$5,000) to bid. If you are the winning bidder, you will be required to put up money up to 5% of the purchase price. Again, this will vary per auction and will vary depending on the number of properties you purchase. You will be responsible for the deposit to bid at auction and the down payment at the auction. Once you have purchased, typically you will have 30 days to close the transaction. Lantzman Lending can perform much faster than required in this scenario.
Do You Fund Trustee Sales?
Lantzman Lending does fund trustee sale purchases by way of refinance. Lantzman Lending does not give investors money to purchase at the trustee sale. Instead, once an investor is the winning bidder on a property at the trustee sale, the investor should submit a loan application immediately. This allows us to open escrow so when the trustee’s deed is obtained by the investor, funding happens within a few business days.
How Do I Get Qualified for a Hard Money Loan with Lantzman Lending?
Complete the “Apply for a Loan” section on the Loan tab. You will get a response within 24 hours from submittal or contact us directly to discuss your scenario.
Will You Roll Costs into Your Loan?
Lantzman Lending may roll some of the repair and loan costs into the loan if the LTV remains under 65%. It is our goal to make both the private lender and borrower successful in every transaction. Our reputation of accomplishing this goal has allowed to continually grow, even in tough markets.
How Long Does it Take to Close the Loan?
Our average closing is 5 to 7 business days. However, if we have all the documentation we can close in as little as 3 days. Each transaction is handled on a case by case scenario. If there is a special requirement, we may be able to accommodate you.
What if I Have a Bad Credit Score?
If you have a low credit score, Lantzman Lending may still fund your loan. Our primary funding criteria is based on the equity in the real estate.
What if I Have a Foreclosure on My Record?
Much like credit score issues, your foreclosure record alone will not dictate your application approval. The number one reason people are denied is lack of equity in the real estate.
Allow Lantzman Lending to Help Finance Your Success!
Contact Antonio Gonzales for a quote within 24 hours!
P: (619) 889-8579 E: firstname.lastname@example.org
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San Diego, CA 92121
CalBRE #01522724 / NMLS #296471