Private money is asset based loan that provides funding for acquisition and repairs on investment properties. These loans are funded by private individuals or private firms. It provides capital for ventures needing quick decisions or non-traditional financing, bridging gaps where bank loans fail, with lenders setting unique terms. Requirements vary by lender, however, most private hard money lenders are more concerned with collateral and equity protection, than borrower credit scores.

This type of loan allows for a simple qualification process, a more competitive offer, quicker closing, enablement of multiple purchases, and leverages your buying power to name a few.

The main criteria for qualification is the evaluation of the property, repairs, and the ARV using comparable sales data. We make sure the borrower has cash upfront for closing costs and fees, but also cash reserves and/or collateral to support monthly interest payments and possible refinance costs. We don’t focus on your credit score or other documents typically requested by a conventional lender.

You will need money upfront for closing costs and origination fees. You will also need cash reserves for monthly interest payments and any potential refinance fees, in case you need to extend the loan beyond 12 months. On some occasions, deals require a minimal down payment. On certain joint ventures, you can eliminate some costs (ask in consultation). To get an estimate to help determine costs based on your loan amount, schedule a consultation.

Absolutely not. Our clients are free to pay-off the loan at any time within the loan period, without incurring any additional charges or fees.

Fill out our form to receive a loan application or call our office at (832) 266-4202 as soon as possible and send us your contract and repair estimate(s) from a licensed contractor at cierra@casolutionsandservices.com .

A private money loan is generally based on the after-repair value (ARV) of the asset, in contrast to a conventional loan, which is typically based on the actual value (AV) of the asset which is the value of the asset “as is” at the time the loan is made. The ARV is calculated based on the value of the real estate asset after the estimated repairs are made on the property. Typically private money loans are meant to be a quick turn-around or after-repair situations. Rates are typically higher than conventional financing, however, funding times are usually much faster and the loan criteria and repayment terms can be customized to the individual situation. Conventional financing is best used for your traditional rentals and long-term hold scenarios. Many investors use private or hard money as a way to secure the property in a short period of time, then refinance into conventional financing.

Yes! It may be used as cross-collateral or used for a cash-out refinance. That is a great strategy! If you have properties that are completely paid for with no liens against them, we can do a cash-out refinance to provide funds for other non-owner occupied investments. You can also use them as cross-collateral for your real estate investing. We use both your subject property and your free and clear property as security for the loan. In doing that, we can lend up to 65% of the as-is combined value of the two properties. That is often enough to purchase your subject property and rehab it. If you have free and clear properties, mention that on your next deal!

Our decision is based on the property, the type of transaction, and your membership in any of our special programs. For most transactions we will lend up to 90% of the purchase price or 65% of the as-is or after-repair appraised value, whichever is less. Ask a loan officer about the special terms available through our membership programs and special purpose loans.

Yes! We can connect you with our loan officer for more details. If you provide more than one property as security (as described above in regard to cross-collateral) we can provide 100% financing. If you don't have free and clear property, find a partner that does! Sharing half of a nice profit beats not being able to do the deal! Many of our investors also use seller-carryback to do the same thing. We recommend finding deals and purchasing property below appraised value as the best way to secure 100% financing.

Yes, for the right deals. If the numbers work and we think the deal will be profitable, we will loan on the After Repair Value (ARV). We recommend you have solid experience doing or managing such repair work. You will need to supply licensed contractor bids as well as meet certain other requirements. Bring us the deal and let's discuss it.

Look for people that have a need to sell and get to them before your competitors do. The simple answer is: wherever you have the least competition. The harder they are to find, the less competition you will have, and the better your chances for a good price. It requires work, but it is work that can end in a deal with profit as opposed to work that spins wheels but never gets a profitable deal. For instance: talk to probate or divorce attorneys, find ugly houses, contact out-of-state owners, etc. Be creative!

By using a true self-directed IRA and making all legal payments from it and depositing all complying profits into it. You should seek legal and financial advice first. You must have a true self-directed IRA. There are many IRA administrators that offer such accounts. Then you buy the property in the name of the IRA, furnish the earnest money from the IRA, apply for the loan in the name of the IRA, pay all costs from the IRA, and put all the profit back into the IRA. This is a topic that requires much more detail than we have room for here. Please contact your legal or financial advisor for the details. Also search online for self-directed IRA custodians to learn more about your options.

Yes! We love flippers! If the deal makes sense, we will help you get it done. Speak to a loan officer for more details.

CA Solutions and Services requires a recent (less than 90 days old), independent, standards-based, third party, as-is evaluation of every property used as security. BPOs, CMAs, or outside appraisals do not generally satisfy all those requirements. Your best bet: Go with ours. They are performed by local appraisers in your market, working at competitive rates, and doing the appraisal the way we need it to be done. The appraisal report will come to us and you will receive a copy.

Our loans are asset-based and our decisions are logic-based. That means we base our decisions about funding and rates on the perceived risk associated with the property. If you have a property under contract, submit it. Our rates are competitive in the private money market but we save our best rates for our best clients. Get started today to become one of those repeat, best clients! Get a property under contract and submit it!

Legal and regulatory reasons. Our current business model is to provide bridge loans to real estate investors for terms ranging from three to 24 months. As a result, it is not cost-effective for us to implement the complex and restrictive processes and rules required by regulatory agencies to do business with owner-occupants.

No. Our loans are asset-based. We base our loans on the value of the asset, not on your credit score, income, or the size of your debts. However, a high credit score can potentially get you our better rates.

Three to four days after we receive all required documentation, which can often take three to four weeks. Though we can do it faster, a good estimate would be three to four weeks after we receive the basic application package. The key factor is the amount of time it takes you and your team to supply all the supporting documentation. We can do our part in 3-4 days, but first-time borrowers rarely get us the documents quickly enough and complete enough to meet that. Go for 21 days or more whenever you can. Remember: if time to close is a factor, you probably have competition. Competition does not usually translate into a good deal. Forget such a deal and go find a good one! (Admittedly, sometimes other factors dictate closing time. If that's the case, bring us the deal and let's discuss it!)

Rates are determined by the going rates for appraisals in your market. This could vary between $300 and $600 (or more). The appraisal price also depends on the property type and location. A typical single family residence, condo, townhouse, or manufactured home may cost between $395 and $575. Multi-family units may cost between $550 and $645. If the property is in a rural area, it may cost more because of added drive time or appraiser availability.

Yes, if you create an LLC, a corporation, an IRA, or a trust before the close of escrow.

Our funding is solely based on properties you already control via ownership or contract. We cannot provide cash in advance for auctions that require immediate payment. Since all loans are asset-based, we must have a lien as security on property you own. The primary way to procure funding prior to getting a property under contract is to have another property that is free and clear and take out a loan against it. Alternatively, you can find a professional auction bidder who will supply the bidding presence and the purchase cash in exchange for a fee (often $5-10 thousand or a percentage) with the rest of the funds paid later at close of escrow.