Sunwest Capital Lending YOUR SHORT TERM LENDING SOLUTION PRIVATE MONEY LENDING PRESENTATION
• Nonconforming direct lender with over 100 years combined experience. • We have a proven track record of delivering performing safe trust deeds to our investor community since 1975. • Reliable top producing AEs/Ops providing strong communica;on skills and work ethic.
QuesDon: What is Private Money Lending? Answer: Equity based lending. • Private money uses a high wealth individual that is interested in making a be>er than bank return on his investment. • Most banks are paying less than 1% on savings, CD’S, etc. With private money an investor can make 8.5%‐13.00% by funding a note for a borrower.
QuesDon: How does Private Money work? Answer: • With some basic informa;on we can get you a quote for your client. • This is ONLY a quote that is usually a range and this quote could change upon receipt of a complete package. • Upon receipt of a complete package we ﬁnd an individual investor who likes the loca;on and condi;on of the property but most of all he likes the return he can receive on the note. • That individual investor funds the loan… NOT an ins;tu;on.
QuesDon: How does Private Money look at the credit package? Answer: Unlike INSTITUTIONAL LENDERS, PRIVATE MONEY has less restric;ve guidelines for: • INCOME • CREDIT • FICO • RESERVES • SOURCE AND SEASONING • CITIZEN STATUS • USE OF FUNDS
QuesDon: How does private money determine the LTV? Answer: The rule of thumb is… • Purchases 60‐65% LTV with 100% CLTV • Cash Out reﬁnances: 50‐55% with 90% CLTV • Private money always looks at the collateral but loca;on and condi;on are important too. A property in a nice loca;on with excellent curb appeal is going to get a higher LTV.
QuesDon: How does private money determine the INTEREST RATE? Answer: Collateral, condi;on, loca;on, LTV, and FICO determine the interest rate along with investor appe;te.
QuesDon: What types of borrowers does Private Money make loans to? Answer: • Corpora;ons, LLC’S, Partnerships, Investors, and Individuals. • We will also loan on an owner occupied cash out reﬁnance if the cash out exceeds the payoﬀ of the exis;ng liens and the cash out is being used for business purposes. • We will NOT loan on an owner occupied purchase or rate and term reﬁnance unless purchased or vested in a business en;ty. Why?? • Because Private Money Lenders make loans for “Business Purposes” NOT “Consumer Purposes” UNLESS it is a NOO Consumer Purpose loan pulling cash out to pay oﬀ personal debt • An owner occupied purchase and rate and term reﬁnance are considered “Consumer Purpose Loans” UNLESS in a business en;ty.
QuesDon: What types of proper;es does Private Money like to loan on? Answer: • SFRs, Condos, 1‐4 Units, 5+ Units • Older Retail Strip Centers • Assisted Living Facili;es • Owner‐Occupied/Operated Facili;es • Construc;on/Renova;on • Proﬁtable Restaurants • Day Care Center • REO Poriolio Acquisi;on • Hotels/Motels • Salons/Spas • Industrial Facili;es • Self‐Storage Facili;es • Medical Oﬃces • Shopping Centers • Metal Buildings • Specialty Retail Stores • Mixed‐Use (commercial with • Vacant Proper;es residen;al) • Warehouse Condos • Newer Flagged Hotels • Warehouses • Oﬃce Buildings • Rehab or construc;on on projects that • Oﬃce Condos are 50% or more complete
QuesDon: What types of proper;es does Private Money NOT like to loan on? Answer: NO SINGLE USE PROPERTIES INCLUDING: • Funeral Parlors • Marinas • Hospitals • Laundromats • Churches • Dealerships • Gas Sta;ons • Unpermi>ed Units • Auto Repair Shops
CORE PROGRAM: • Our loan amounts range from $100,000 to $2,000,000 • Our loans are 10, 20, 30 or 40 year amor;zed or I/O (ONLY Small Balance Commercial) due in 3 years. • Our standard fee is 2 – 6 points. • Our prepayment penalty ranges from 0 months to 1 year depending on the program (80% of 6 months interest).
HIGH BALANCE COMMERCIAL PROGRAM: • These loan amounts range from $2, 000,000 to $20,000,000. • These loans are 20 or 25 year amor;zed or I/O and due in 5, 7 or 10 years. • Our standard fee is 2‐ 5 points. • Our prepayment penalty is variable (case by case). • Debt Service Ra;o is 1.2 to 1.5
• We don’t require Income Doc. • We don’t require FICO SCORES • We don’t require Reserves. • We don’t require Source or Seasoning. • We don’t require borrower to be a US Ci;zen. • We don’t require Appraisal Reviews. • BPO OK if less than 50% LTV.
• Collateral (Security – The property securing the note.) • Skin (Borrowers own Cash into the transac;on.) • Story (The story that gave rise to the need for the loan.) • Exit Strategy (A realis;c detail of how the loan will be paid oﬀ at maturity.) If one leg is missing the stool becomes less stable.
• Keep in mind a private money loan is a “BRIDGE” loan or a “BAND AID” loan. • Most borrowers take a private money loan because they need to close FAST...FASTER than ins;tu;onal lending. • This is a short term loan…THREE years…and in most cases this loan will pay oﬀ sooner.
The goal for the borrower ader three years is: • They will have their credit reestablished. • They can meet Fannie Mae, Freddie Mac income requirements • Their FICO scores will be be>er. • Their divorce will be ﬁnal. • The probate will be completed. • The property will be sold if a ﬂip. The BEST part is that the broker may get to reﬁnance the borrower in 3 years and get a SECOND loan!!!
Sunwest Capital Lending “YOUR COMPANY FOR LIFE” CALL US (949)542-3158Chris Stamos firstname.lastname@example.orgRon Rauch email@example.comMary D‘Acierno firstname.lastname@example.org