Frequently Asked Questions
+ Do you require an appraisal?
No, we typically don't require a 3rd-party appraisal (we try to walk the property ourselves at no upfront cost to the borrower for property we can easily access and value).
+ Do you charge advanced lender fees?
No, unlike some hard money lenders who make a living off of advanced fees and often do not close, SDC does not charge any advanced lender fees or an upfront lender deposit.
+ How quickly can you close?
We can close in as few as 7 days. Typically, we're waiting for items from the borrower or title to move a loan file forward.
+ Can I purchase property with no money down by including other property I own?
Yes, we specialize in customizing a loan to finance the purchase of real estate with little or no down payment by using cross-collateral. Basically, you would need to own other property that has enough equity that we can use to secure a larger loan up to 100% of your new purchase. Even if your other property has an existing loan, we can still lend in 2nd position, so you won't have to pay off your existing loan, especially if you've locked in a very low rate.
+ How do I get a hard money loan pre-approval letter to submit with my offers?
Private money loan pre-approvals are available after submitting your loan scenario through our website, e-mail or by phone. Please reach out today for a pre-approval typically within 24 hours!
+ Do you have a hard money "no-doc" loan program?
We typically don't ask for pay stubs, tax returns or bank statements, unless we determine this information is necessary in select circumstances.
+ Do you work with hard money loan brokers?
Yes, the majority of our loans are sourced from loan brokers. We protect our brokers 100% of the time.
+ How are you different from other Hard Money Lenders?
SDC Capital is a real estate family office. We invest our own money along with our investors into every deal. Because we don’t rely on outside capital, we are the decision maker on every loan. This eliminates unnecessary delays or retrades and provides more certainty of funding to our borrowers.
+ What are your interest rates?
Currently our rates start at 8.99%. Our borrowers often consider us a lower-cost lender relative to other hard money lenders, as we strive to offer more "soft money" terms if the loan scenario makes sense. Please reach out so we can provide a free no obligation quote today.
+ Do you charge points?
Points typically range from 1.0-1.5 points for a first lien loan, but par pricing is available (1.0 point equals 1.0% of the Loan Amount paid at closing).
+ Do your points change depending on the loan term? What is your maximum term?
The short answer is generally Yes. Our loan term is typically 12 months, and occasionally up to 24 months. We have a more common sense approach to determining points. Ultimately, we are trying to maintain a target return (including the interest rate and points). For loan terms beyond 12 months, we typically charge higher points to maintain our overall target return on a loan.
+ Is there an early pre-payment fee?
No pre-pay fee options are available. We typically would like to receive a minimum of 3-5 months of interest payments before a loan is paid off, as most of our income comes from interest income from our loans, vs. than the fee-based model of most of our competitors.
+ Do you fund hard money second mortgages?
Yes, we can fund 2nd lien trust deeds. Typically, our 2nd liens are part of a blanket loan securing more than 1 property, but we also consider stand-alone 2nd liens.
+ Will you lend on an income producing property with below-market rents and/or high vacancies?
Yes! We underwrite property with below-market leases and/or high vacancy and determine a stabilized value assuming higher market-rate rents, while also considering the borrower's business plan to achieve higher rents during the loan term.
+ Are your loans interest-only?
Yes, our loans are typically interest-only monthly payments.
+ What is your minimum and maximum loan amount?
$250,000 to $5.0 million. Most of our loans range from $750,000 to $2.5 million, with an average loan size of ~ $1.0 million.
+ Do you fund hard money loans for foreign nationals?
Yes, we have a history of success lending to foreign nationals. We do require the borrower to have a U.S. bank account, among other considerations.
+ What property types do you lend on?
We consider all major property types: residential 1-4, multifamily (our specialty), industrial, retail, office and mixed-use properties. That said, the majority of our loan portfolio is comprised of multifamily and residential, in addition to some industrial and mixed-use property types.
+ Do you offer a hard money loan interest reserve?
Yes, we will consider a private money loan interest reserve, if there is enough equity in the property to support the additional reserve. This option is typically reserved for low loan-to-value scenarios.
+ Can title of the property be held in an LLC, trust, or corporation to qualify for a hard money loan?
Yes, property ownership can be held in an entity such as an LLC, trust or corporation to qualify for a private money loan. We will also allow property to be held in a borrower's personal name.
+ Where do you lend?
We lend in all major metro markets in California and occasionally in adjacent states.
+ Do you have a minimum FICO score?
No FICO requirement. However, we do adjust loan terms for borrowers who show a history of late payments.
+ Am I required to use your hard money lender title company?
Not for purchase scenarios. For refinances, we prefer a nationally recognized company to provide both the title and escrow services.
+ Do you require an environmental Phase I or Phase II report to qualify for a private money loan?
Typically not, except for industrial property or certain types of retail property that may be contaminated from previous occupants.