STEP ONE: APPLICATION

Complete and submit the Initial Loan Application. Once submitted, your Initial Application will be quickly reviewed by our pre-approval team and you will be told what loan terms can be offered in your particular situation. 

If appropriate, we will issue a Letter of Intent and/or Loan Commitment based upon the facts of your Initial Application. If you are not an appropriate candidate for a hard money loan, or we cannot help you, you will be told that immediately.

STEP TWO: DOCUMENTS

If you are preliminarily approved, we will ask you to provide additional information and documentation including, but not limited to, the following items:

1. Copy of Contract for Purchase.
2. Copy of Driver’s License.
3. Detailed list of proposed repairs with a draw schedules.
4. Copies of any appraisals or inspection reports of the Property.
5.  If you are an entity borrower, you will need to provide copies of all your corporate documentation (Articles of Formation and Operating Agreement).
6. Addresses of any cross-collateral property (if applicable).
7. Upon preliminary approval, you will be asked to pay the BPO Fee ($400); Other third party costs may be charged to the borrower in some cases.

STEP THREE: VALUATION AND TITLE

Upon receipt of all documentation and payment of the BPO Fee, title to the property will be ordered and examined as well as a physical inspection of the property by Sharper Capital staff and/or a third party broker.

*If required, a licensed appraisal and/or property inspection will be ordered. The appraiser or inspector will contact you directly to set up a day and time for inspection. Payment for the appraisal and/or property inspection MUST be paid by at time of inspection and is NON-REFUNDABLE. You will be told the cost for these inspections at the time the appointment is set up with you.

STEP FOUR: INSURANCE & CLOSING

Assuming there are no appraisal, inspection or title issues, loan funds will be made available to you through a closing/settlement with a title company AFTER you have provided evidence of General Liability Property Insurance in an amount equal to the total loan amount. 

If you are doing rehab work, you may be required to obtain a Builder’s Risk Policy, and if the work is being done by a contractor, he or she must provide a copy of their General Liability Insurance and Proof of Workmen’s Comp Insurance. 

You will be responsible for all closing and insurance costs. If you are in the negotiation process, we encourage you to get the Seller to contribute as much as possible toward closing costs. The lender will not care and it will keep your “in” costs as low as possible.

STEP FIVE: CONSTRUCTION/REHAB DRAWS

If your hard money loan is a rehab/construction loan, you will most likely have to establish a construction draw schedule with the us. We generally stick to 3-5 draws depending on the size of the project. 

At each completion phase, you must call us to have a property inspection arranged. Once approval is obtained and/or mechanic’s lien waiver executed, we will release the draw. 

The final draw is NEVER released until the project is completed. You will be responsible for construction draw inspection fees, which generally are $100.00. These fees are taken out of the draw, or sometimes up-front at settlement.

STEP SIX: SELL OR REFINANCE

Within the pre-determined loan term, you must sell or refinance the property to make certain we receive a full payoff of the loan. If you planned and executed your acquisition and exit strategy appropriately, you should be walking away from the project with a big payday. 

Feel free to use your pre-approval from your first successful deal to receive other loan commitments! 

Your approval process just got easier, as you no longer need to re-apply the next time you find your next “hot” real estate deal. 

We are here to help you build wealth in real estate through creative financing! Give us a call to get started: 513-334-7501