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FREQUENTLY ASKED QUESTIONS
Here are some short answers to some of our most commonly asked questions.
- What is a "hard money" loan?
- What do LTV and ARV mean?
- I've been turned down at banks, is it possible for me to get a loan from DJ Mortgage?
- Does my credit matter?
- Will you finance commercial properties or apartments?
- Do you make personal loans?
- Why are your rates so much higher than banks?
- Do you make permanent loans?
- Where do you loan?
- How quick can you fund?
1. What is a "hard money" loan?
It has been described as "hard" to find or "hard" to pay, but typically it is a secured real estate loan in which the owner has equity. The equity can be enhanced by improving the property and refinancing the hard money loan. The property provides the security in the event of default by the borrower. We are most interested in creating long term relationships helping good borrowers with good properties.
2. What do LTV and ARV mean?
These are acronyms for loan to value (LTV) - the value of the property in relation to the loan on the property and after-repaired-value (ARV) - the value of the property after all improvements or construction has been completed.
3. I've been turned down at banks, is it possible for me to get a loan from DJ Mortgage
It is certainly possible. We are a private lender, and as such, are not tied to the myriad of regulations that banks must follow. We underwrite and make our own loans based upon our decisions and understanding of the marketplace and your particular property. Usually if the property is worth it, we will give your loan request serious consideration.
4. Does my credit matter?
Yes, your credit is important to us, but is not the only determining factor in financing your project. Your ability to repay a loan as required, your investment in the property, the cost of the property and the value after repairs are also considerations in our decision to lend.
5. Will you finance commercial properties or apartments?
We will look at multifamily projects from 2 units to 200 and more. Bring us office buildings, retail, industrial, lots to be developed, and new construction.
6. Do you make personal loans?
No. We only make loans for commercial, business and investment purposes.
7. Why are your rates so much higher than banks?
We are a private lender with private money. We take risks that banks ordinarily would not and therefore charge a higher rate for the use of our funds. You will find that although the funds may cost more, it is less expensive than having a venture partner to finance your project.
8. Do you make permanent loans?
No, our loans are usually for a 6 month term, but we have arranged financing for more than 12 months in certain situations, particularly commercial projects. We do have permanent lending partners that will be able to assist with your long term needs on single family properties.
9. Where do you loan?
We have concentrated on the Atlanta metropolitan area for most of our loans, but are not necessarily precluded from going beyond those bounds. Call us about your project and we will try our best to make it work for you.
10. How quick can you fund?
We have funded properties as quickly as 1 day, but that is rare. If there are no unusual circumstances (i.e. title issues, all required documents in hand), then the closing can proceed as soon as the appraisal has been completed and title is cleared. Usually this can be accomplished within 1 week to 10 days. You do your best and we will respond in kind.
If we have not answered your questions here - give us a call at (404) 814-1644 or email us at Info@DJMortgage.net
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