Hard money loans are a form of private money financing that is used to purchase investment real estate that may not conform to conventional underwriting standards. Funds for hard money loans generally come from private individuals or from mortgage pool funds run by fund managers that raise capital from multiple individuals.

Hard money lenders are able to approve and fund a loan much more quickly than traditional lenders such as banks. They do not require as much documentation because they are primarily concerned about the value of the real estate being used as collateral versus the credit and income of the borrower. Hard money loans often provide more leverage than conventional loans, allowing borrowers to rely less on their own or outside investors’ capital.

Hard money loans are offered for a variety of investment purposes including:

• Fix and flip loans which allow you to acquire, renovate and sell real estate;
• Bridge loans which help you close quickly on time sensitive investment loans;
• Cash out loans which allow you to refinance real estate you already own in order to obtain capital for another purpose;
• Construction loans whereby a borrower may be able to finance a portion of the site acquisition and much or all of the construction cost.

First and foremost, choose a lender that is experienced with the type of loan that is being requested. The lender should understand the collateral and strategy and be able to structure a deal that offers you the opportunity to have a profitable outcome. A good hard money lender can often add value to the investment decisions that you must make. Next, verify that your lender has the capacity to make the loan and the capability of executing in the time frame required. Finally make sure that your lender has a reputation of integrity and conducts its business with honesty and transparency.

We lend on non-owner occupied single family residential (1-4 units), townhomes, condos, multifamily, commercial, land, and other special purpose uses.

Currently we are lending in the major markets of South Carolina, North Carolina and the greater Savannah, Georgia area.

Yes. Borrowers must have a minimum credit score of 600. Anyone with a credit score less than 600 will be considered on a case by case basis.

Yes. Low Tide loans to both full time real estate entrepreneurs as well employed individuals who are seeking to supplement their income.

Yes, we can accept almost every type of legal entity as a borrower. The principle manager or managers will be required to personally guarantee the loan if there is an entity borrower.

Yes

This is determined on a case by case basis, but we typically do not originate loans less than $50,000

Follow the Contact Us link on the Low Tide website. Please fill out the form completely and someone from Low Tide will contact you quickly, usually within the same day.

To obtain a prequalification letter, follow the Contact Us link and make a request.

No, applying is free. After you submit your application and provide us with the necessary information, we will send you a preliminary term sheet. If you decide to move forward, then you will need to return the term sheet signed and an appraisal will be ordered which you will be required to submit payment for directly to the appraiser.

Yes, we require an appraisal which will value the property subject to the rehab or construction budget. This appraisal can be a valuable tool when you either sell the property or refinance into a long term loan.

This depends on how quickly we receive all of the necessary information about the property, and the borrower. Usually once we have the appraisal back, if title is clear we can close as quickly as one day. Generally, the entire process takes on average two weeks from application to close.

In addition to the online loan application we will need:

• Evidence of at least one Fix & Flip project completed during the past 36 months via a buy side Closing Statement and a sell side closing statement; all other experience will be evaluated on a case by case basis
• Formation documents if borrower is an entity:
  • EIN document
  • Certificate of Good Standing
  • Articles or Organization/Formation
  • Operating Agreement if existing
• Individual borrowers must have filed the last two years of Federal income tax returns
• Entity borrowers must have filed the last two years of Federal income tax returns (where applicable)
• To qualify, all members must have filed federal income tax returns for the past two years and at least one member has a credit score of 620 or above
• Copy of driver’s license of individual borrower or principals of entity borrower
• A credit report (not just score) within past 90 days for individual borrower or at least one principal of entity borrower can be submitted for verification. Low Tide can pull a soft report at borrower’s request.

Typically, our loans are for a term of 6 months with possible extensions available subject to lender approval. However, depending on situation, 12 month terms may be available. Interest rates generally start at 11-15% and there will be loan fees of 2-4% of the loan amount. You will also have to pay the cost of an appraisal and our processing fee of $550.

Yes. At a minimum the property will be inspected by the appraiser during the appraisal process.

Our loans are serviced through our partnership with Bay Mountain Capital. Our pledge is that you will be treated courteously and your loan will be serviced with accuracy and professionalism.

Yes, we require monthly payments. Typically those are interest only payments.

At your request, we will order an inspection of the property to determine how much of the scheduled work has been completed. Once we receive this report, we process your draw and fund the eligible amount to you by your choice of check, ACH, or wire transfer. Generally, the entire draw process takes three to five business days from request to funding.

Our 6 month loan program comes with two 60 day extensions built-in, which can be exercised at lender’s discretion (as long as the loan is in good standing) for a fee. Extensions on the 12 loan program can be considered on a case-by-case basis.

Just email our loan servicing department and we will provide you, your mortgage professional or your title company with a payoff statement, usually within 48 hours.

Absolutely! We pay for referrals – please inquire through our contact us page.

Our business is built on repeat customers. As long as you have the experience and financial capability of handling multiple properties, we would like to be your lending partner!