Hard Money Loans
An acquisition loan is a type of loan that is designed specifically for helping real estate investors purchase new properties. For instance, you can use acquisition loans to finance the property’s purchase price and any associated costs such as closing costs, rehabilitation costs, and more.
At Pine Financial Group, we offer 90% acquisition loans to our clients, which means that your down payment requirement will only be 10%. This loan is an excellent option for investors who may not have a lot of cash on hand or want to keep as much of their capital as possible for other investments.
Besides the low down payment requirement, our 90% acquisition loan can be hugely beneficial to real estate investors throughout Virginia for the following reasons:
Conventional lenders (such as banks) often charge high origination fees. These fees typically range from 2% to 5% of the total loan amount. They are generally paid upfront and cover the costs of originating and processing the loan. At Pine Financial Group, we reduce the origination fees on our 90% acquisition loans.
As a result, not only does our loan become more affordable, but it will also help improve the bottom line of your investment.
Conventional loans can take upwards of a month to close – sometimes even longer. This timeline can be frustrating for investors trying to secure financing for a time-sensitive real estate investment opportunity.
On the other hand, our 90% acquisition loans can close in as little as a week. If a deal is particularly time-sensitive, we can work with investors to close within just a day or two.
One of the most frustrating aspects of the lending business, in general, is that many loans come with hidden charges, such as prepayment penalties. Prepayment penalties discourage borrowers from paying off their loans early, costing the borrower a significant amount of money.
At Pine Financial Group, we pride ourselves on being a transparent and honest lender. We’ll never charge you any hidden fees or costs, and we’ll always be upfront about the terms of your loan. As a result, you can be confident that you’re getting a fair deal when you work with us.
A pre-approval can be a great way to get ahead in the loan process. Getting pre-approved means knowing exactly how much money you can borrow. As a result, a pre-approval can help you budget your loan and ensure you don’t overspend on your property.
Additionally, you can use your pre-approval as proof to sellers that you have access to funding. Such proof can give you a stronger position to negotiate from (as well as give you a leg up on other potential buyers).
At Pine Financial Group, we can provide our borrowers with pre-approval on our 90% acquisition loans within hours.
A few different types of lenders offer acquisition loans, including traditional banks, private money lenders, and hard money lenders. Each type of lender offers its own set of advantages and disadvantages. The following is a rundown of the different lenders that provide acquisition loans:
Banks and credit unions usually have the strictest lending requirements. Although they generally have the lowest interest rates and longest loan terms, their loans often take the longest to close and typically have the highest fees.
As a result, securing an acquisition loan through a bank or credit loan can be difficult and time-consuming. It can also result in getting less favorable loan terms.
For example, banks typically require much larger down payments on acquisition loans (depending on various factors) to help offset the perceived risk of the borrower. As such, it’s not uncommon for down payment requirements to be as high as 20 to 30%.
The Small Business Administration (SBA) is a government agency that provides loans to small businesses. SBA-backed loans are often more favorable than traditional bank loans because they have lower interest rates and longer repayment terms.
However, the application process can sometimes be lengthy and complex, and borrowers must typically have strong credit scores to qualify. Additionally, SBA loans are only available for certain types of businesses, so they may not be an option for everyone.
Online lenders are companies that offer loans entirely online. They typically have more relaxed lending requirements than banks and credit unions. However, they often provide loans with shorter terms and higher interest rates.
While online lenders can be a good option for some borrowers, it’s essential to do your research to make sure you’re working with a reputable and trustworthy company. In addition, many scams and predatory lenders are operating online, so you must be careful when choosing an online lender.
A no-cost loan commitment letter is a document that states that the lender is willing to provide financing for a particular property. This type of letter can give you a significant advantage when negotiating with sellers as it indicates that you’re serious about purchasing the property and have the financing to do so.
Here at Pine Financial Group, we have a quick pre-approval process. We are happy to give our borrowers a loan commitment letter for free to help improve their negotiating power with sellers.
There are countless reasons why investors choose to work with us time and time again. Here at Pine Financial Group, we focus on the potential of any given investment project more than the blemishes our borrowers may have on their credit histories. As such, we can provide loans to a wide range of borrowers, including those with less-than-perfect credit.
Additionally, our loans have some of the lowest interest rates and fees in the industry, so you can be sure you’re getting a great deal when you work with us.
Finally, we are proud of the reputation we have built for working with investors to help them achieve their dreams. It’s why we continue to be transparent and straightforward with every single one of our clients. As a result, you won’t find any hidden fees or costs when you work with us, so you can be confident that you’re getting the best possible deal.
If you’re interested in learning more information about our 90% acquisition loans, we encourage you to book a consultation with one of our loan officers. During your consultation, we’ll go over all of the terms and conditions of the loan and answer any questions you may have.
We realize that taking out a loan is no small matter, and we want you to be as informed as possible before you make a decision.