Why are your rates lower than the typical 3 to 4 points (i.e. 3-4% origination) and 14-15% interest?
We work hard to keep our costs down so we can provide very competitive rates. We also try to minimize unnecessary costs for our borrowers (e.g. single family properties do not require an appraisal).
- We use one source for funds, so we are the final decision makers and do not need to consult with or comply with anyone else in making our lending decisions, restrictions and rules. We don’t have to compete for additional money sources that may require higher rates.
- We work to keep our overhead low.
- We underwrite in-house and don’t need to spend resources communicating back and forth with other parties.
- For rehab/ fix and flip loans we look at borrowers’ experience and qualifications to lower risks and costs to all parties.