QUESTIONS? WE HAVE ANSWERS.
1. What services does Advance Forward Capital LLC offer?
We offer a range of services tailored to meet your real estate investment needs. Our offerings include Fix & Flip, Buy & Hold, Refinance, Commercial/Multi-Family, and Land/New Construction Private Money Loans from reputable lenders in our network, allowing you to choose the best terms for you. We also provide Proof of Funds Letters, Collateral DNA Reports, helpful for an estimate of your as-is value and lien history prior to an appraisal as well as high equity off-market Property Leads available, so you are not competing with other investors in your area in your search for properties.
2. How does private and hard money lending differ from traditional lending?
Private and hard money lending typically offers faster approval and funding processes, more flexible lending criteria, and is asset-based, relying on the property’s value rather than the borrower’s credit history.
3. What types of real estate investments can I finance with private and hard money lending?
Private and hard money lending can be used for a variety of real estate investments, including fix and flips, buy and hold rental properties, commercial, multi-family, land/new construction, bridge and refinance. They must be non-owner-occupied properties.
4. What are the benefits of private and hard money lending?
Benefits include quicker access to capital, flexibility in loan terms, no minimum credit score requirements, and the ability to secure financing for properties that may not meet traditional lending criteria.
5. Are you a Lender or a Broker and are there fees or commissions involved?
We are a nationwide broker with a large network of lenders that we work with. We like providing options to the investors we work with so they can have the best rates and the quickest closings available to them. If you’re in need of a 100% financing for Fix and Flip projects, we also have split equity opportunities available to provide you up to a 100% funding for your purchase, rehab and closing costs. Regardless of the loan type there is always a Broker fee for providing our services, which is standard in the industry and agreed upon prior to closing.
6. Is my information kept confidential?
ABSOLUTELY 100%! Your privacy is of the utmost importance to us. Any information you provide is completely confidential and only shared securely with our lender network! If you want to deal with a reliable, reputable company who will treat you with professionalism, understanding, and respect – YOU HAVE COME TO THE RIGHT PLACE!
7. How do you decide the amount to lend?
It is based on the Asset you have under contract as well as your credit and experience level. Ask our team how you can get up to 100% of the purchase price, rehab and closing costs for Fix and Flip projects, even with low credit or experience.
8. Why won’t your lenders fund owner-occupied properties?
Our current business model is to provide loans from our lender network to real estate investors for non-owner-occupied real estate investments. If you need funding for a home, you will be occupying, enquire within and we can connect you with one of our owner-occupied funding partners.
9. I need 100% financing. Can you do that?
Yes. Ask our team for more details. When joint venturing with us on a Fix and Flip/Hold project we can indeed provide up to a 100% financing.
10. What Does True 100% Funding Mean?
Our lender will fund 100% of your purchase, rehab, and closing/prepaid costs when a joint venture is established between Advance Forward Capital LLC and the borrower… up to 70% of the ARV. The only out-of-pocket costs will be the Loan Application, The Appraisal Cost and The First Rehab Draw, and Loan Payments, if you are below 70% of the ARV. Any amount over the 70% ARV loan amount will be required to be paid at closing.
11. How long does it take to close a transaction from start to finish?
About 7-10 days after the lender receives the appraisal and all required documentation but receiving all documentation can take a few weeks. The key factor is the amount of time it takes for the appraisal and for you and your team to supply all the supporting documentation. Our lender can do their part in roughly 7-10 business days, but Investors seeking funding rarely get us the documents quickly and complete enough to meet that. Aim for 21-30 days whenever you can. Bring your deal in to discuss it with us and we can discuss timing more in depth with you.
12.What Does FHA Cap Mean?
We can lend up to the FHA Cap amount for Fix and Flip projects. The FHA Cap represents the maximum loan amount that a borrower can get for an FHA loan in the county the investment property is located in. Our lender only funds up to this FHA Cap to ensure that the average homebuyer will be able to qualify for a loan to purchase the property once you have it available for sale. To find the FHA Cap in the county where the investment property is located click on the link below: FHA Mortgage Limits (hud.gov)
13.What Does ARV Mean?
ARV stands for After-Repair Value. It is the estimated value of a property after completed renovations. As a general rule, appraisers will take the high values and low values of recent comps in the area and determine the ARV somewhere in between.
14.What Does Asset Based Lending Mean?
Asset-based lending (ABL) refers to a type of financing in which a borrower secures a loan by using their assets as collateral. Instead of focusing primarily on the borrower’s creditworthiness and personal income, our lenders rely on the value of the real estate assets being used as security for the loan. For Fix and Flips and New Construction loans they base off of the ARV or As-completed Value, for DSCR Purchase and Refinance loans they base off of the Income and As-is Value of the property and for Bridge loans they base off of the As-is Value of the property.
15. What are your Loan Terms?
1. Max Loan Amount: Just Bring Us Your Deal! No cap on the loan amount if the numbers make sense. Rest assured; we will help you get it done. Call us today for more details.
2. Advance Forward Capital LLC has lenders with options from $30,000+ and can provide additional lending solutions based on the property you have under contract and type of loan needed.
3. Rates start at 6% annualized interest with an origination fee from 0-3%, and no prepayment penalties. (Rates are based on credit score and experience, but credit score and experience does NOT determine loan approval for most of our lenders.)
4. Loan Term: 6 Months to 3 Years for a Fix & Flip or Bridge. 5-30 Years for a DSCR purchase or refinance.
5. Our lenders will allow one loan approved per applicant until they have a proven track record with them.
16. Do I need an appraisal and how much will it cost?
Most lenders require an appraisal to determine the ARV or As-is value. Appraisal costs vary from $500 to approximately $800 depending on property location. Our lenders offer hybrid appraisals that take less time and are less expensive or full appraisals that may confirm a higher value but will take more time and cost a bit more.
17. Is A Licensed & Bonded Contractor bid required?
If repairs are needed our lenders will require, in most cases, an itemized scope of work bid from a licensed and insured contractor for any repairs before they can order the appraisal for the loan.
Have Additional Questions? If you have additional questions, you can reach out to us at 619-259-0090 or use the Contact Us link at the top of the page.