Trusted Buyer of Multifamily & Retail Commercial Assets
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Frequently Asked Questions
You've Got Questions? We've Got Answers Here.
Private Money
Can I Use My Free And Clear Property To Fund Future Non-Owner Occupied Investments?
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!
I Need 100% Financing. Can You Do That?
Yes! Ask a 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.
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How Do You Decide How Much To Lend?
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.
Where Can I Find A Good Deal?
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!
Will You Lend For Both The Purchase And The Repairs?
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.
How Can I Do Deals With My IRA?
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.
I Want To Borrow Money Based On The ARV Of The Investment Property I'm Purchasing Or Own. Is This Something You Allow?
Yes! We love flippers! If the deal makes sense, we will help you get it done. Speak to a loan officer for more details.
Why Do I Need To Buy An Appraisal When I Already Have A CMA Or Existing Appraisal?
We require 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.
What Are Your Rates And Loan Origination Fees?
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!
Why Won't You Lend On Owner-Occupied Properties?
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.
Is Credit The Deciding Factor In The Decision?
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.
How Long Does It Take To Close A Transaction From Start To Finish?
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 30 days or more whenever you can.
How Much Does The Appraisal Cost?
Rates are determined by the going rates for appraisals in your market. This could vary between $300 and $600 (or more). 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.
I'm A Sole Proprietor. Can I Still Get A Loan?
Yes, if you create an LLC, a corporation, an IRA, or a trust before the close of escrow.
I Am Seeing A Lot Of Good Deals On Auction Sites And At Live Auctions. How Can I Procure Funds To Have Cashier's Checks Ready To Pay For The Property At The Auction?
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.
Bid & Contractor
Can We Use Dealio's Hammer Point To Submit The Bid Instead Of A Contractors Bid?
No, that is only a tool to give you an idea of what the rehab cost could look like. We need an actual 3rd party licensed and bonded contractors bid to get the loan started.
What Does It Mean When A Company Is BONDED?
A surety bond is a promise and a guarantee that they will complete the work they agreed to do and follow the rules of their trade. If a company fails to meet their obligations, the customer can make a claim against the bond.
Why Are Itemized Bids So Important?
They follow the loan from start to finish. The appraiser bases the valuation off the bid, the loan officer bases the loan off it, and the bid is used to do the cost breakdown for the draws.
Why Is It Important To Have A Licensed & Bonded Contractor?
Licensed and bonded contractors give you the insurance should any damage happen during the renovation or construction. They need to have general liability insurance and workers compensation insurance to protect against damages and injuries on the job.
What Is An Itemized Bid?
t's a bid broken down into categories (e.g., flooring, lights, tubs) rather than just rooms or general terms like "paint." It must include details on interior vs. exterior, rough vs. finished plumbing, etc.
What Is Required On An Itemized Bid?
Company letterhead, business name, contractor name, business address, phone, email, client name, property address, the words "bid" or "estimate," labor and materials breakdown, detailed explanation per category with costs, terms of the contract, and contractor signature.
Can An Itemized Bid Be Changed After The Loan Has Closed?
The bid can be changed within the dollar amount, but the line items themselves cannot be changed. Therefore, we do not allow work order changes.
Reimbursement Draw
What Is The Cost If I Need More Draws Than I Initially Paid For?
The fee will come out of the reimbursement draw. If you don't have a reimbursement coming, you must pay out of pocket ($150 inspection fee + $250 wire fee).
What Is A Contingency And Why Do I Need To Have Additional Funds For It? How Do I Get It Back?
A contingency is money set aside for unexpected events. To access it, you need a paid receipt and a letter of explanation. If unused, it is released on the last disbursement.
What Will Stop Me From Receiving A Draw?
Unpaid monthly payments, NSF payments, outstanding fees, expired maturity date, or lapsed taxes/insurance.
What If I Have Unexpected Repairs?
We do not do change orders. Unexpected repairs must come out of the client's pocket. If a contingency was held, it won't be released until the rehab is 100% completed.
How Am I Reimbursed And What Is The Time Frame?
You must first have an inspection. Once completed, you fill out a lien waiver and banking info sheet. Wires are sent only to the borrower's account.
What Is The Cut-Off Time That I Need To Have My Paperwork In For A Wire To Go Out?
11:00 am Pacific time for same-day wires (which go out between 1:00 & 2:00 pm PT).
What Is The Process To Order An Inspection?
Email draws@janjaproperties.com with the loan number, address, and contact info. An inspector will contact you within 2 days. Once the report is back, the draw department sends you the necessary paperwork to fill out.
What If I Miss The Scheduled Appointment Of Meeting The Inspector?
Failure to meet the inspector results in a $55 – $105 travel fee charged to the borrower. No excuses.
Who Can Receive The Wire?
ONLY the borrower/client. We do not typically pay contractors directly.
How Often Do I Need An Inspection?
At least once every 90 days. Going past 90 days results in a $100 force-place inspection fee and puts the loan in default.
What Time Do Wires Go Out?
Wires go out daily between 1:00 & 2:00 pm Pacific Time – It is up to your bank when it gets released. Some banks release immediately, others release next day. We have no control over your bank and what their processes are.
Inspection
What Is The Process To Order An Inspection?
Email draws@janjaproperties.com - Make sure that the loan number is in the subject line - Last name of Client: - Rehab Address: - Contact Name of who will meet inspector at rehab: - Contact's Phone: - Contractor's email: - Items that are completed for inspector to look at: - Once draws gets the above email they will order inspection with NVMS and send you back a confirmation number. - 2 days later the inspector will contact you to set up the appointment. - Once inspector comes out it could take up to 2 days for the report to come back - The draw department will work up the draw and send you an email with a copy of the draw, inspection report, a lien waiver to be filled out and the banking info sheet to be filled out. - Send lien waiver, banking info sheet, permits and paid receipts back to the draw department before 11:00 am pacific time. Wires go out by 2:00 pacific time daily. - The inspection company we use is back East so if you send request for inspections after 1:00 pacific time your order will not be accepted through their system until the next business day. Turnaround time is usually 5 business days unless it's over the weekend which could take up to 7 days.
What Is The Procedure For The Actual Appointment?
Inspector will call you and set up a time to come out to the rehab. Make sure that someone is there or that the inspector can get into the home. I highly recommend that you have a piece of paper with your name, the rehab address and all the work that you feel is completed and hand that paper to the inspector so they know what they should be looking for. Point out things that are completed and make sure they are taking photos of those items.
How Do I Know How Much I Will Be Reimbursed From The Inspection?
Once the inspector sends the report to the draw department with the evaluation, the draw department will determine if they agree with the inspector's evaluation or not. They will put together an excel spreadsheet which is called a draw and the draw department will send that along with the inspection report to you of how much they are able to release at that time.
What If I Don't Get Contacted By The Inspector Within 48 Hours After Requesting An Inspection?
First question that you should ask yourself is….. did I receive a confirmation email? If you did not, the email might not have been seen. Resend the email and call the draw department at 800-630-9252. If you did receive confirmation, call the draw department and ask if they can request the inspector's information from NVMS so that you can contact the inspector directly.
What If I Miss The Scheduled Appointment Of Meeting The Inspector?
Upon the Borrower's request for an inspection, the Inspector will contact the Borrower and/or their designee to set an appointment for a site visit. Failure to meet the Inspector at the set time will result in a $55 – $105 travel fee charged to the Borrower. No excuses.
What Day And Time Do The Wires Go Out?
Wires go out daily by 2:00 pm Pacific time. You need to have your paperwork into the draw department by 11:00 am Pacific time.
Who Can Receive The Wire?
ONLY the Borrower/client can receive the wire, we do not pay contractors but reserve the right if we feel it's necessary. DO NOT put a contractor's info on the bank form. If you change contractors, you run the chance of your wire going to the wrong person and it could take up to a month to get the wire back and that is IF the wrong person is honest and sends it back. It is not our responsibility for incorrect wire information.
How Often Do I Need An Inspection?
You must have an inspection within the first 90 days after closing then one within every 90 days thereafter. If it goes to day 91 you will be charged a force place inspection of $100.00 and you are now in default of your loan.
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Strategic Capital Solutions
Private capital for time-sensitive real estate opportunities.
Markets - Where We Acquire
- Sunbelt States
- Midwest
- High-growth Suburb Markets
- Emerging Secondary Markets