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Private Lending in Michigan

Weare locals and specialize in providing private capital in Michigan suburbs. These are BUSINESS PURPOSE real estate loans. We do NOT offer consumer-purpose loans secured by primary residence or second home. We offer creative loan structures if needed for business purpose loans.

When is the best time to use Private money?

In a traditional situation, borrower would for a bank or credit union for loan. However, for short term needs Private money or hard Money loan provides access to capital quickly. The borrower even though would benefit from these loans, it comes with higher costs, for couple of reasons:

  • The lender who is providing the loan is looking for a better return as these are non - conventional type of investments.
  • The risk of the project determines the rate of return too. This includes loan-to-value (LTV) on a residential rehab loan; the location; amount of renovation needed for the property to make it marketable etc.
  • In general terms are negotiable as everyone has to benefit from a project.

Overview of Loans

  • $10,000 to $400,000 Business Purpose Real Estate Loans
  • Non Owner Occupied Loans (We do not make consumer loans)
  • Private Money / Hard Money
  • Affordable Loan structuring
  • Acquire, Improve properties
  • Most funding turnaround time 15 – 30 days.
  • Funding generally for maximum of 12 months

Borrower Considerations

  • Our loan applications do not have a minimum credit score. However, various factors including credit score, overall financial strength, and ability to pay back the loan will factor into the maximum LTV, down payment, points, and interest rate.
  • Additional personal Guarantor may be required.
  • Previous experience of the borrower in real estate are preferred. We like to review some of the previous projects completed.
  • Borrower to use experienced and qualified contractors.

Final Thoughts

  • Deal must be safe and profitable for borrower.
  • Good communication with project updates from borrower to lender is a key aspect of successful project completion.
  • Overall; ethics, honesty and integrity with low debt of borrower will provide success in good, bad or neutral economic situations.