Frequently Asked Hard Money Questions

What is a hard money loan?
A hard money loan is a short-term, asset-based loan, that provides the funds for acquisition and repairs on investment properties.

What type of investor uses hard money?
All types. From new investors to very experienced investors, and from those buying rentals to those buying properties to flip. Anyone wanting to leverage their assets and put less of their own money down on a purchase uses hard money.

When does it make sense to use a hard money loan?
There are several reasons to use a hard money loan. Even real estate developers with strong financial statements and access to traditional financing choose to use hard money. The primary reasons for using a hard money loan are:

1. To secure the deal, you need to close quickly and your bank cannot meet your deadlines.
2. You have an excellent investment opportunity but do not have sufficient financial strength to get a bank loan.
3. The project may be outside a bank’s scope of lending.

How do I qualify for a hard money loan?
Qualifying for a hard money loan is simple, and begins by completing the Exile Capital Quick Application. An analysis will be performed and someone will contact you by the next business day.

What if my credit score is low?
Hard money loans are primarily asset-based. Our main focus is the value of the property or assets used as collateral.

How quickly can you fund a loan?
Once we have everything we require, we can usually close the next business day. We require the following items to close:

• Your executed contract
• Your repair estimate
• The appraisal we will order
• Your insurance binder
• Title company docs

What is a direct/private lender?
A direct lender funds transactions from their own private capital. This means there is no 3rd party (broker/middleman) in your loan transaction, keeping your cost to a minimum. Direct lenders also approve all loans internally.Exile Capital is a direct, private, lender.

What are the advantages of using hard money?

• Simple qualification process
• Fast Closing
• Allows for multiple deals
• Leverages your money almost 3 to 1 verses conventional or bank financing

What if I need an extension on a loan?
If you are in good standing, the loan may be extended, but this will be decided on a case-by-case basis.

Are there any up front costs?
There are no up-front fees to pay to Exile Capital.  We get nothing unless we fund your deal. The only cost in the process, prior to loan origination, is paying for the inspection.

What loan to value are you looking for?
We generally look at deals that are at 70% or less but can review on a case-by-case basis

What criteria do you use to approve a loan?

• A project’s loan-to-value (LTV) ratio
• Market demand for the project
• Borrower’s experience and ability to service the debt
• Achievable exit strategy.

Depending on the nature of the project, other criteria may need to be evaluated before approving a loan.​

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