Lending

What we lend on

Short-term, first-lien bridge loans on single-family homes in North Carolina and Virginia, for investors and operators who buy, renovate and sell.

01 / Typical terms

Typical terms

Loan size
Roughly $50,000 to $350,000
Term
6 to 12 months
Interest
10% to 12% annual, actual/360
Points
1 to 3
Leverage
Up to about 75% of purchase price
Collateral
First lien on non-owner-occupied single-family
Funding
Wired to your closing attorney
Prepayment
No prepayment penalty. Some loans carry a minimum interest amount; if yours does, the term sheet says so.
Extensions
Available for a fee
Payoff letter
Typically within one business day

Typical of loans we have made. Not an offer or a rate quote. Subject to underwriting.

02 / The math

The math, shown.

Interest is quoted as an annual rate and accrues daily on an actual/360 basis: the balance times the rate, divided by 360, for each day the loan is out. Points are a percentage of the note amount, stated up front.

Example: $200,000 for 120 days

Principal
$200,000.00
Interest, 120 days at 10%, actual/360
$6,666.67
Points, 2 on the $200,000 note
$4,000.00
Interest and points
$10,666.67
Per diem (200,000 x 0.10 / 360)
$55.56

Example only, not an offer. Some loans carry a minimum interest amount. If yours does, the term sheet says so, and the payoff letter itemizes every amount due.

Try your own numbers

Per diem
$55.56
Interest
$6,666.67
Points
$4,000.00
Interest and points
$10,666.67

Illustration only. Your rate, points and any minimum interest are set in your note after underwriting.

03 / Who we lend to

A good fit, and not a fit

A good fit

  • Buying and renovating a single-family home to sell
  • Borrowing through an LLC or other business entity
  • A clear exit, by sale or refinance, within 6 to 12 months
  • A closing attorney in place, or one you are ready to engage

Not a fit

  • Your home, or any home you or your family will live in
  • Personal, family or household loans of any kind
  • Property outside North Carolina and Virginia

04 / What we need

What we need from you

Most of this is what you already have for the purchase. Having it ready is the fastest way to a decision.

  • Purchase contract
  • Scope of work and rehab budget
  • Comparable sales or other support for the after-repair value
  • Entity documents: articles, operating agreement and EIN letter
  • A short list of projects you have completed
  • Your closing attorney's contact
  • Proof of funds for your down payment and closing costs
  • Evidence of insurance naming the lender, before closing

05 / Extensions and payoff

Extensions and payoff

If the project runs long, extensions are available for a fee. Ask before your maturity date, not after.

When you sell or refinance, ask for a payoff letter. It typically arrives within one business day and shows the per diem, so your attorney can close on any date. There is no prepayment penalty; if your loan carries a minimum interest amount, the term sheet says so.

Have a deal under contract?

Send the address, the numbers and what you need. You will get a clear yes, a clear no, or a short list of what we need to decide.

Start an inquiry

Business-purpose loans only. North Carolina and Virginia.