Our loan process is basically the measurement of our risk in making the loan.
We obtain basic information to determine whether the hard money loan request fits within our lending parameters. Generally, this can be done by spending a few minutes on phone. The borrower will know the the results of this review quickly, within a day or two at most - often immediately or within hours.
Identification of Loan Terms
If the hard money loan request appears feasible, we will obtain other pertinent information for a more-detailed review. Following this review (typically within 24 hours), borrower is presented with a proposed loan structure outlining the specific terms and conditions under which the loan could be made. Provided borrower finds the loan proposal acceptable, all parties agree to move forward in good faith to consummate the transaction.
We perform our due diligence. Borrower will likely need to provide additional information. For large loans, it may be necessary to engage engage industry professionals (appraiser, attorney, engineer, etc) as appropriate to assist in the underwriting and evaluating the property. If other professionals are engaged, the borrower will likely be required to advance funds to the lender to cover the cost of such third-party professionals. The time needed to complete the due diligence process will range from a day or so for small loans to a few weeks for larger loans. The time needed depends on the complexity of the transaction, the availability of third-party professionals (if needed) and the responsiveness of the borrower and others to requests for information.
Documentation and Closing
If we are comfortable proceeding following completion of our due diligence, funds will be committed, documents prepared for borrower's review and the closing scheduled. Borrower accepts the commitment, approves documents and the hard money loan closes.