5 Questions Realtors Ask About Private Money Loans

5 Common Questions
Real Estate Agents
Ask About

Private Money Loans
How to Help Your Buyers and Sellers Find
Short-Term Financing to Close More Escrows
Courtesy of PrivateMoneyBlog.com

Question #1

What’s the minimum
down payment?

PrivateMoneyBlog.com

Answer:
For most purchase transactions, your buyer will
need a 35% down payment or more.


Answer:
However…


Answer:
However…
In some cases, the loan amount and loan-to-value
(LTV) might be based on the actual appraisal value
if it is actually higher than the contract price.


Answer:
However…
In some cases, the loan amount and loan-to-value
(LTV) might be based on the actual appraisal value
if it is actually higher than the contract price.

(This might help make your deal possible.)


Question #2

How fast can you close?


Answer:
For most purchase transactions, the closing timeframe can take from 1-3 weeks.


Answer:
Of course, you understand the nature of real estate
deals.
So the actual timing depends on how quickly you
and your clients can provide all the necessary items.


Answer:
Of course, you understand the nature of real estate
deals.
So the actual timing depends on how quickly you
and your clients can provide all the necessary items.

Such As…


Answer:
• Loan Application (The buyer can apply online.)


Answer:
• Fully-executed purchase contract


Answer:
• Fully-executed purchase contract
• Preliminary Title Report


Answer:
•
•
•
•

Loan Application (The buyer can apply online.)
Fully-executed purchase contract
Preliminary Title Report
Appraisal


Answer:
•
•
•
•
•

Loan Application (The buyer can apply online.)
Fully-executed purchase contract
Preliminary Title Report
Appraisal
Other transaction-specific items as may be
needed by title & escrow, etc.


Question #3

Do you need inspection
reports?


Answer:
You will not need to provide home inspections for
most purchase transactions.


Answer:
However…


Answer:
However…
If inspections and reports are part of the purchase
agreement, the lender may request a copy of those
reports in underwriting the loan.


Answer:
However…
If inspections and reports are part of the purchase
agreement, the lender may request a copy of those
reports in underwriting the loan.

Tip: The buyer should do their due-diligence
on all real estate transactions.


Question #4

Do you need an
appraisal?


Answer:
Yes.
Your client will need to have an appraisal done for
About 80% of the purchase loans will need a recent
appraisal to support the market value and show the
general condition of the property.


Answer:
Yes.
Your client will need to have an appraisal done for
About 80% of the purchase loans will need a recent
appraisal to support the market value and show the
general condition of the property.

(The collateral property is very important
for a private money loan approval.)


Question #5

What do you need from
my client to get a
pre-approval?


Answer:
Your Buyer will only need to provide some basic
items to get the process started.


Answer:
Your Buyer will only need to provide some basic
items to get the process started.

Here’s a quick list…


Answer:
• Standard mortgage loan application (The
borrower can apply online 24/7.)


Answer:
• Paycheck stubs or other form of documentation to
support the income listed on the application.


Answer:
• A current bank statement or online printout
showing the buyer’s available down payment.


Answer:
• A brief summary letter explaining how long they
plan to keep this loan and how they intend to pay
the loan in full. (Exit strategy)


Answer:
• A brief summary letter explaining how long they
plan to keep this loan and how they intend to pay
the loan in full. (Exit strategy)
And that’s it to get started. We’ll review
the info and get to work for you!

If you found this information helpful,
please share it with a fellow Realtor.
(We would really appreciate it. )

If you found this information helpful,
please share it with a fellow Realtor.
(We would really appreciate it. )

Go to next slide

Thank you for taking your time to watch this slide!
Here’s a free resource so you can become even smarter about
using private financing to grow your real estate business.
(And provide a good resource for your clients, too.)

Download a Free Copy of Our E-Book:
How to Get Funding When Banks Won’t Lend

Get it now at PrivateMoneyBlog.com

Content Courtesy of ARC Capital

www.arcequity.com
Licensing and legal stuff:
This slideshow presentation is only for informational purposes as it relates to California real estate.
We do not render any legal or tax advice; therefore, consumers are encouraged to seek a qualified
professional for such legal or tax matters.
This presentation does not constitute a commitment to make or arrange a loan at any given interest
rate.

All loan requests are subject to underwriting and final investor approval.

Presentation created by Christopher Sanchez, Associate Broker
Licensed by the California Bureau of Real Estate #01361564 | NMLS ID #278113
ARC Capital | 100 Stony Point Road, Suite #260 | Santa Rosa, CA 95401
Copyright © 2014. All rights reserved. (707) 523-2900 | www.arcequity.com
Equal Housing Opportunity.

5 Questions Realtors Ask About Private Money Loans

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