Question 1

Who uses hard money loans?

Accepted Answer

• New real estate investors who can’t demonstrate enough income or cash reserves for a bank to qualify them
 • Investors with poor credit, undocumented income or a short work history
 • Experienced investors with more than 4 mortgages in their name
 • Investors buying properties that need significant repairs
 • Buyers who need renovation funding, not just purchase funds
 • Investors who don’t have the cash required to close with a conventional loan
 • Real estate investors who are highly leveraged elsewhere
 • Buyers of properties that won’t appraise as-is for an acceptable value
 • Buyers dealing with distressed sales that must close in days, not weeks
 • Buyers of rental properties that are under-rented, in need of repair or otherwise problematic
 • Property owners with high equity who need quick access to cash for any reason

Question 2

Why should I use a hard money loan?

Accepted Answer

Hard money loans are most advantageous because of their speed and simplicity. To qualify for a loan, we base the approval on the value of the underlying asset. We do not require credit checks, personal income, tax returns, or rent rolls. This allows you to capitalize on time sensitive opportunities or properties that a traditional bank will not fund because they are distressed.  In short, hard money loans help you leverage opportunity.

Question 3

Who benefits from using hard money loans?

Accepted Answer

Real estate investors who need financing quickly or are acquiring a property that will not qualify for a traditional bank loan will benefit from hard money loans.

Additionally, investors that have high liquidity but are unable to qualify for a bank loan use hard money loans to acquire and repair properties to later rent, refinance, or sell.

Question 4

People told me that hard money loan rates are high, is this true?

Accepted Answer

Rates on hard money loans are higher than with traditional banks, but they are funded quickly and do not require months long financial investigations. Experienced investors know that the value in leveraging hard money loans is far greater than the interest costs they incur. Savvy investors how to use hard money as a tool so they can remain liquid and reduce their risk.

Question 5

Can I use a hard money loan to buy and repair a property?

Accepted Answer

Our fix and flip loans are structured to enable investors to easily acquire, rehab, and sell properties at a profit. We will fund up to 100% of rehab costs.

Question 6

What are the additional costs and fees?

Accepted Answer

We pride ourselves on simple and transparent lending, so we only charge an origination fee at closing. We don't charge any "junk fees" or prepayment penalties. Additionally, we do not charge for appraisals on local deals.

Question 7

Can I borrow hard money for my primary residence?

Accepted Answer

We do not lend on primary residences. Our loans are for investment in commercial and residential investment properties.

Question 8

How long do you typically write your loans for?

Accepted Answer

Our hard money loans are typically written up for a term of one year with the possibility of extension.

Question 9

What is your prepayment fee or penalty?

Accepted Answer

At Webster Capital, we require no minimum interest and charge no prepayment penalties.

Question 10

What are your typical terms?

Accepted Answer

Most hard money loans are typically written on a one-year term with two points origination.

Question 11

How do I get a proof of funds letter to submit with my offers?

Accepted Answer

Call or contact us with your name and contact information. Most sellers and real estate agents will view an offer accompanied by our pre-approval letter as a “same as cash” offer. Commitment letters can also be provided once we have approved your loan.

Question 12

How fast can I close with your loans?

Accepted Answer

When an abstract of title is required, we can close within 5 days of our attorney receiving an updated abstract. In areas where chain of title is customarily sufficient to produce a title commitment, we can close within 48 hrs of receipt of said commitment.

Question 13

What's different about Webster Capital?

Accepted Answer

We are a private lender with years of experience helping people in our market. We lend private money, are not a fund, and service our own loans. We are fast, supportive, and can help you find creative financing solutions.

Here are the basics of hard money loans from Webster Capital. Contact us if you have or additional questions or apply now!