Frequently Asked Questions About Hard Money Loans
Hard Money Loans for Fixing and Flipping Houses in Kansas City, KS
How Does the Loan Program Work?
Crossroads Investment Lending has quick and easy funding available to investors with property in the Kansas City and Overland Park Metro Area. Your property serves as the collateral for the loan, which means that the loan is primarily based on the property itself. Our process is quick and easy, with a seven to 10-day close being typical. All this means is that you can focus on getting the fast return on your investment that you want.
What Is a Hard Money Loan?
A hard money loan is a loan that’s secured by a hard asset, which is often commercial or residential real estate. Hard money loans are sometimes called bridge loans, private capital loans, or private loans. Hard money loans are first mortgages on investment real estate and are an alternative to traditional bank loans.
Who Gets Hard Money Loans?
We offer hard money loans to help you get a return on your investment for properties you want to fix and flip. Our borrowers are members of the Kansas City community, and some of them are credit impaired, property impaired, time impaired, or in need of quick financing for some other reason.
What Types of Properties Do You Offer Loans For?
We loan money for one-to-four family residential units in the Kansas City, KS area. Please note that properties must not be owner-occupied in order to qualify.
Does the Loan Include Repair Money?
Yes! Here at Crossroads Investment Lending, we know that you want to minimize your out-of-pocket expenses so that you can maximize your return on investment. That’s why our loans may include the funds you need to repair your property.
How Does the Loan Application Process Work?
Our loan application process is simple. Just follow the loan application steps on our website, where you’ll be walked through the quick process. Make sure to fill out the loan request completely in order for it to be processed, and our application checklist will help you do that. Send in the necessary supporting documents to get the funding processed quickly so you can get started on your investment.
Where Do I Send My Loan Application?
Start by filling out your Credit Authorization form online at our website. You can reach us by email at firstname.lastname@example.org, and our mailing address is 7803 Shawnee Mission Parkway, Overland Park, KS 66202. If you have any questions, feel free to reach out to us.
Can I Get a Loan If I Am a Sole Proprietor, Corporation, or Partnership?
Yes. However, all loans must be personally guaranteed.
Can I Get Pre-Approved, and How Do I Get a Pre-Approval Letter?
Yes, simply complete the credit authorization, and we will send the pre-approval letter to you upon approval (the same day in most cases).
Does My Credit Score Matter?
Our minimum required credit score is about 650 for rehabs that will be held for rentals. Contact us because we’re more flexible if you’re “fixing and flipping.” It’s important to have a good credit score when applying for any loan, and there are several things you can do to work on improving it.
What Are the Loan Criteria for Your Loans?
We will loan up to 65% of the after-repaired value on our independent property assessment. We can go higher in certain cases, such as for long-term customers or in specific areas.
What Are the Loan Fees?
The total up-front loan fees are $1,250 plus 3.5 to 3.6 points of the total loan amount.
Can I Finance Closing Costs and Fees?
Normally the answer is no, and never on your first deal. Once we have established a good working relationship with you, we can work with you to reduce your out-of-pocket expenses.
How Fast Can You Fund My Deal?
The standard funding time is seven to 10 business days. With that being said, we can close in as little as 48 hours, assuming we have a clear title, survey coverage, and an available appraiser.
Do You Escrow for Interest Payments?
No. Many of our competitors will force you to escrow your interest payments, which makes you borrow more and earn less.
Is an Appraisal Required?
Yes, we require one of our approved experts to perform a property assessment. We will schedule the assessment for you, and we 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. You’ll find a button to pay for your appraisal on the Forms page titled “Property Assessment.”
What Types of Insurance Do I Have to Carry?
At the time of closing, we will require a six-month Builders’ Risk certificate of insurance with a vacancy clause, either paid in advance or at closing. 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 website, and our inspector will authorize payments. Wire transfers can take as little as two days after work is completed, whereas checks can take up to two weeks.
Can I Make Interest Payments Online?
Yes, once you have been set up in our system. We will mail you an interest payment calendar as part of your welcome packet, and our system will also email you a link for each payment each month.
How Do You Determine the Repairs Needed?
Start by submitting a Repair List as part of your application process. We’ll compare your list with our inspection report and confirm the necessary repairs.
What If the House Needs Significant Foundation Repair?
In this case, we require the necessary foundation repairs to be part of the detailed repairs submitted.
Which Areas Do You Loan In?
We offer loans in the Greater Kansas City Metro Area of Kansas and Missouri, including Overland Park, KS.
Are Inspections Required?
Yes, the inspection will be ordered by Crossroads Investment Lending every time a Draw Request is made. The borrower pays for the inspection at the time the application is submitted.
Why Are Home Inspections Needed?
Home inspections provide the buyer with an opportunity to identify any major issues with the home they’re purchasing. Home inspections are performed by trained professionals who can detect possible problems and make them known to the buyer.
Can You Help Us Find an Investment Property?
Yes, our sister company usually has wholesale properties for sale that would make ideal investments. We also work closely with local wholesalers who have properties for sale. Check out our list of properties for sale in Kansas City, KS.
How Many Loans Will You Fund at a Time?
Our standard limit is three loans with a borrower at a time. This rule may be waived at our discretion as our goal is to be your exclusive funding source to help you grow your business to the level of success you desire. Our experience with you as our valued customer will help determine how quickly we can fund an increasing number of deals for you.
Do You Refinance Properties?
We’re happy to work with you, and we can refer you to financial institutions that can help with refinancing.
Are Extensions Granted?
Three-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 for extensions.
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 also have connections with lenders who offer intermediate and long-term financing options in Kansas City, KS, so contact us today for all your investor rehab lending and hard money loan needs.
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