Answers to the Most Common Hard Money Loan Questions
Click the questions below to see their answers. Please note that these answers are for general information and we look forward to speaking to you in person about your loan.
Under most circumstances the only fee we require upfront are our 3rd party real estate broker’s opinion of value for the collateral being used. GCMAC orders and pays the real estate agent directly. This fee ranges from $300-$600 and is non-refundable.
In the San Antonio metro area we will consider loan amounts from $50,000 to $750,000. Other areas of Texas we will consider loan amounts from $75,000 to $750,000. Higher loan amounts closer to $1,000,000 may be considered with lower LTV on a case-by-case basis.
GCMAC will lend a maximum of 40%-50% LTV based on several different factors, including: location, property type, property condition, strength of borrower, etc.
GCMAC, with the help of 3rd party real estate brokers, will lend based of the LESSER of the sales price or quick sale value. GCMAC defines quick sale value as the price which property will need to be listed for in its “as-is” condition and be sold for cash or 3rd party financing in about 60 days or less. Often times, this is 75%-80% of a value determined by a traditional appraisal or tax assessment.
GCMAC will make loans secured by nearly any type of NON-HOMESTEAD PROPERTY (no primary residence) you can think of: multifamily, bars, motels, restaurants, retail centers, auto repair, mini storage, mixed use, mobile home parks, etc.
While increasing the money a borrower puts down increases the likelihood of approval, in some cases it is possible to buy a property with little money out-of-pocket. Circumstances that make this possible are seller-held 2nd liens or additional non-homestead collateral on which GCMAC can have 1st lien position.
NO, GCMAC must be in 1st lien position. From time-to-time GCMAC will close its own loans in a 1st and 2nd, but no other lender may be ahead of our lien.
Typically 10-15 business days. If we have all our required documentation (such as, title, insurance, entity doc, etc.) then we can close much sooner.
Surveys are required on all raw land loans. A survey may be required under other loan types on a case by case basis.