LOAN PROCESS
Steps to completing a hard money loan with Black Brook Capital:
Before you get a hard money loan:
- Identify your real estate investing strategy
- Identify target properties
- Assess available capital
- Get pre-approved by completing our application
- Receive your pre-approval letter
- Form an LLC if you have not already (we can only lend to companies, and all properties have to be titled that way)
- Start making offers!
After your offer is accepted:
- Email us an executed offer to purchase
- Send us:
- An itemized scope of work
- Bids to complete the work
- Timeline
- Details on how you plan to finance the deal (we will not lend more than 65% of ARV or After Repair Value).
- Past clients have either used savings, HELOCS, credit cards, or loans against insurance policies, or taken on partners. We encourage our clients to factor in these expenses and make sure it is financially wise to take on this type of risk.
If your hard money loan package is approved and you are ready to start the project:
- Order a title commitment
- Arrange for property insurance (we will require a copy of insurance binder and receipt prior to close, listing our firm as additionally insured)
- Close!
- Complete repairs and request draws as work is completed (the fee for a draw inspection is billed by the title company at cost without any markup from our firm)
- Pay your mortgage just as you would to a bank (invoice will be sent with interest and tax escrow)
Paying us back in full and hopefully accomplishing your goals:
- Request loan payoff amount and wire instructions (you sold or refinanced depending on exit strategy)
- Repay your loan and receive a Satisfaction of Mortgage from us