Frequently Asked Questions About Hard Money Loans
How Does the Program Work?
Crossroads Investment Lending has quick and easy funding available to investors with property in the Kansas City metro area. The property is the collateral for the loan. This means the loan is primarily based on the property itself. The process is quick and easy (7-10 day close is typical) so you can focus on getting the fast return on your investment.
What Types of Properties Do You Loan?
We loan on one-to-four family residential units. Properties may not be owner occupied.
Does the Loan Include Repair Money?
Yes. We know that you want to minimize your out-of-pocket expenses in order to maximize your return, so our loans may include the funds to repair your property.
How Does the Loan Application Process Work?
Simple! Follow the loan application steps on our website and you’ll be walked through the quick process. The loan request will need to be filled out completely in order to be processed, so look at the application checklist and send in the supporting documents in order to get funding processed quickly so you can begin your investment!
Where Do I Send My Loan Application?
Please fill out your Credit Authorization form online at www.kclend.com. Our email address is firstname.lastname@example.org. Our mailing address is 7803 Shawnee Mission Parkway, Overland Park, KS 66202. If you have any questions, you can reach us at 913-766-2900.
Can I Get a Loan If I Am a Sole Proprietor, Corporation, Partnership?
Yes. However, all loans must be personally guaranteed.
Can I Get Pre-Approved & Do I Get a Pre-Approval Letter?
Simply complete the credit authorization. Upon approval we will send the Pre-Approval letter to you, which in most cases, is same day.
Does My Credit Matter?
Our minimum required credit score is about 650 for rehabs that will be held for rentals however if you are “fixing and flipping” we can loan much lower.
What is the Loan Criteria For Your Loans?
We will loan up to 65% of the after repaired value on our independent property assessment. In certain areas and with long term customers, we can go higher.
What Are the Loan Fees?
Total up-front fees are $1250, plus 3.5-6 points of total loan amount. Details on our website: www.kclend.com.
Can I Finance Closing Costs & Fees?
Normally no, and never on the first deal. However, once we have established a good working relationship, we can work with you to reduce your out of pocket expenses.
How Fast Can You Fund My Deal?
The standard fund time is 7-10 business days. However, assuming we have clear title, survey coverage, and an available appraiser, we can close in as little as 48 hours.
Do You Escrow For Interest Payments?
No. Many of our competitors force you to escrow your interest payments, meaning you borrow more and make less!
Is An Appraisal Required?
Yes, we require one of our approved experts to do a property assessment. We will schedule the assessment for you and require the fee for the assessment to be paid in advance. DO NOT ORDER YOUR OWN APPRAISAL.
Can I Pay For Appraisals Online?
Yes, once you have been set up in our system. There is a button on the Forms page “Property Assessment.”
What Typer of Insurance Do I Have to Carry?
At time of closing, we will require a 6-month, paid in advance or at closing Builders’ Risk certificate of insurance with a vacancy clause. Flood Insurance is required for any property located in a flood zone.
How Much Is a Draw Inspection & How Long Does It Take?
The draw inspection fee is $175. The Draw Request Form is on our site and our inspector will authorize payments. Wire transfers can take as little as two days from completed work where checks can take up to two weeks.
Can I Make Interest Payments Online?
Yes, once you have been set up in our system. An interest payment calendar will be mailed to you in your welcome packet and our system will email you a link for each payment each month.
How Do You Determine the Repairs Needed?
You will submit a Repair List as part of your application process. We will compare your list with our inspection report and confirm the necessary repairs.
What If the House Needs Significant Foundation Repair?
We require that the necessary foundation repairs will be part of the detailed repairs submitted.
Which Areas Do You Loan In?
The Greater Kansas City metro area of Kansas and Missouri.
Are Inspections Required?
Yes. The inspection will be ordered by Crossroads Investment Lending every time a Draw Request is made. It is also paid for by the borrower at the time the application is submitted.
If We Are Looking For an Investment Property, Can You Assist Us In Finding a Property?
Yes, our sister company usually has wholesale properties for sale that would make ideal investments. We also work closely with local wholesalers that have properties for sale. See list at https://www.kansascitypropertymanagement.com/
How Many Loans Will You Fund At a Time?
Our standard limit is 3 loans with a borrower at a time. This may be waived at our discretion. Our goal is to be your exclusive funding source so you can grow your business to the level of success you desire. Our experience with you as our valued customer will help determind how quickly we can fund an increasing number of deals for you.
Do You Refinance Properties?
We work with and can refer you to financial institutions who can assist you.
Are Extensions Granted?
3-month extensions may be granted on a case-by-case basis, provided all payments have been made on time and all repairs have been completed. Additional fees will apply.
Do You Offer Any Intermediate Term Financing Such as 5-10 Years?
We offer short-term lending to get you through the initial purchase and rehab process. We do have connections with lenders who offer intermediate and long-term financing.
Why Choose Us?
- Family Owned & Operated
- Local Fix & Flip Finance Experience
- All Credit Scores Considered
- Close in 7-10 Business Days
- Short Term Loan for Investment Projects