It is an advantage. Most of our borrowers do not have a debt source that fully replaces ours, but they do have equity options — and those equity partners typically take a large share of the project's profit, which usually costs far more than our interest rates.

We lend for short-term projects with clear exit strategies, and within those guidelines our cost of capital helps you move quickly and keep more of your profit. If a project runs long or the budget changes, the cost can rise, so we work with you up front to plan for it.

What sets us apart is our knowledge of the industry and our fast turnaround times. Our underwriting department understands the nuances of real estate and can work with you to create loans that are cost effective while still allowing you to execute your project in a timely manner.

Once we have underwritten a deal and the borrower who manages it, we generally turn requests around quickly — draw requests can be funded within a few days, and new loans can be funded within 2–3 weeks for an established borrower.

Funding estimates are 2–3 weeks for established borrowers and 1–2 months for new borrowers.

These are estimates rather than promised dates. Every request is subject to underwriting and approval, and the timeline depends on how complete your information is when you submit it.

Depending on the loan type, interest rates typically start at 12% annually. Origination points vary from 2% to 6%, depending on the project type and loan term.

A personal guarantor — a person who personally promises to repay if the borrowing entity cannot — is required on most loans.

We can lend in most states. As a company driven by numbers and performance, we are more willing to do deals in markets that have shown strong growth demographics for the present and, more importantly, the future. We also require the target market to have a proven need for the type of project you intend to create.

When deciding which areas of the country to lend in, we look at which areas will offer our investors the best risk-adjusted returns. If a new area offers better risk-adjusted returns than where we currently lend, we will make the jump into that new area.

We do not have pre-set limits for portfolio exposure per state. We are always working to increase exposure in markets we view as strong, while decreasing exposure in markets viewed as less favorable.

We consider projects in these categories:

- Non-primary residential property financing or refinancing
- Income-producing commercial property financing or refinancing
- Undeveloped land
- Development and construction
- Distressed-property acquisitions

In most cases, value is obtained by an independent third party. This third-party valuation can come in the form of a purchase contract, a broker's opinion of value, or an appraisal of the asset.

We also internally assess what the asset is worth. This may be based on current value, finished value, or a mix, depending on the borrower's intentions for the loan we are originating.

Yes. We keep track of all projects throughout their entire life cycle. This is done to ensure loan proceeds are being used according to budget while also making sure the quality of our investors' collateral is maintained.

We work with third-party voucher control companies to ensure funds are allocated as shown in the budgets created before the project began. These companies independently verify that work has been done according to budget and send us that information to sign off on before money is disbursed to borrowers — so there are many layers of verification for construction-controlled projects.

The borrower questionnaire is the starting point. To complete the initial underwriting process, plan to have the following ready:

- Detailed description of the loan request
- Intended exit strategy
- Preliminary title report
- Purchase or option agreement for the property
- Documentation for the borrowing entity (articles of incorporation, operating agreement, etc.)
- Appraisal or broker price opinion of the project completed within the last 6 months
- General liability or hazard insurance
- Current financial statements and the two most recent years of tax returns for the borrower and guarantor(s)
- Phase I environmental report (if applicable)
- Design plans for the project (if applicable)
- Construction cost breakdown (if applicable)

Very rarely will we not consider looking at a deal. However, all deals we consider must be backed by land and its improvements as a collateralized lien. If the loan is not backed by land plus any improvements, such as a loan for furniture or fixtures, we will not consider it.

Financing is subject to underwriting and approval. Submitting a questionnaire starts a review and guarantees nothing.