Frequently Asked Questions
Whether you’re a seasoned builder or a veteran investor, our new construction loans keep your project moving from lot purchase to final walkthrough. We’ll close your loan in as few as 10 days so you can break ground sooner and stay on schedule.
REI Private Money Lending FAQs
1. What services does REI Private Money Lending offer
Funding for Fix & Flip, Buy & Hold, Refinance, Commercial, New Construction, and other asset-based loans. We also provide Proof of Funds letters, Collateral DNA Reports (deal analytics), and access to high-equity, off-market leads.
Tags: Fix & Flip, Buy & Hold, Refinance, Commercial, New Construction, POF, Analytics
Resource: Hard Money Loan Overview-https://www.investopedia.com/terms/h/hardmoneyloan.asp
2. How quickly can you close?
We underwrite the asset and exit strategy, not only W-2s and tax returns. Expect faster decisions, flexible structures, and options for properties banks avoid—ideal where timing and creativity win deals.
Tags: Asset-Based, Strategy, Speed
Resource: Asset-Based Lending — https://www.investopedia.com/terms/a/assetbasedlending.asp
3. Are you a lender or a broker? Are there any fees?
Both—whichever delivers your best outcome. We lend directly or broker through vetted capital partners. A standard 3% broker fee applies; complex or 100% financing structures may use an equity-share model aligned to project upside.
Tags: Fees, Broker, Direct Lender
Resource: NMLS Consumer Access — https://www.nmlsconsumeraccess.org/
4. How much can I borrow and how is it determined?
Typical leverage: up to 90% of purchase, 100% of rehab, with total exposure capped near 70% of ARV. Strong comps, a credible scope, and a clear exit plan can improve terms; JV structures may exceed these ranges.
Tags: ARV, Leverage, JV
Resource: ARV & Leverage Basics — https://www.biggerpockets.com/blog/what-is-arv
5. Do you offer true 100% financing?
Yes—via joint-venture equity partnerships when total exposure remains around 70% ARV and the project meets criteria. You’ll typically cover appraisal, application, and initial draw, reimbursed as milestones are met.
Tags: JV, 100% Financing, ARV Cap
Resource: Joint Venture (JV) — https://www.investopedia.com/terms/j/jointventure.asp
6. What do you mean by “True 100% Funding”?
We can fund purchase, rehab, and closing costs if projected exposure stays within our ARV cap and the deal meets JV standards. Best for investors with realistic comps, an actionable timeline, and a credible exit.
Tags: 100% Financing, ARV, Exit Strategy
Resource: After-Repair Value (ARV) — https://www.investopedia.com/terms/a/after-repair-value.asp
7. What’s the average time to close?
Plan ~14 business days after we have a complete file; allow up to 30 days for appraisals, contractor bids, title work, and entity docs. Early engagement and complete paperwork keep timelines tight.
Tags: Timeline, Title, Appraisal
Resource: What Is Title Insurance? — https://www.alta.org/advocacy/consumer/
8. What is the FHA Cap and how does it affect my deal?
HUD sets county-level FHA mortgage limits. If your exit is agency takeout, caps can shape your refinance amount and target purchase price. Check limits early to align leverage with the planned exit.
Tags: Refinance, Exit, FHA Cap
Resource: HUD Mortgage Limits Lookup — https://entp.hud.gov/idapp/html/hicostlook.cfm
9. What is ARV (After-Repair Value)?
ARV estimates value after renovations. We size leverage and risk against this number. Support ARV with recent, like-kind comps and a clear scope to improve pricing and draw schedules.
Tags: ARV, Comps, Scope
Resource: ARV Guide — https://www.biggerpockets.com/blog/what-is-arv
10. What does Asset-Based Lending mean in practice?
We focus on the property’s value-add plan and exit—not just personal income docs. If the numbers pencil and the path to value is credible, we can structure capital even when bank financing stalls.
Tags: Asset-Based, Exit Strategy
Resource: Asset-Based Lending — https://www.investopedia.com/terms/a/assetbasedlending.asp
11. What are your typical loan terms?
Loan sizes ~$30k–$2M+. Rates generally track market hard-money levels with 0–3% origination. Fix & Flip terms ~6–24 months; Buy & Hold/Refi up to 30 years. Credit influences pricing more than approval.
Tags: Loan Terms, Rates, Origination
Resource: Hard Money Loan Basics — https://www.investopedia.com/terms/h/hardmoneyloan.asp
12. Is an appraisal required? How much does it cost?
Usually yes. Costs vary by property and location, often a few hundred dollars. In limited cases, we may accept a recent appraisal or a BPO as a supplement.
Tags: Appraisal, ARV, BPO
Resource: What Is an Appraisal? — https://www.appraisalinstitute.org/
13. Do I need a contractor bid?
Generally, yes. Provide a licensed, insured contractor’s detailed, line-item bid. If you self-manage, submit a scope with quantities and costs. Clear scopes reduce surprises and align draw schedules.
Tags: Contractor Bid, Scope, Draws
Resource: Hiring a Contractor—Tips — https://consumer.ftc.gov/articles/hiring-contractor
14. How do you protect my personal data?
We use strong security practices and limit data sharing to your deal team. Files are encrypted in transit and at rest. We follow industry guidance for safeguarding consumer information.
Tags: Security, Compliance
Resource: FTC Safeguards Rule (Overview) — https://www.ftc.gov/business-guidance/resources/ftc-safeguards-rule-what-your-business-needs-know
15. What if I have more questions?
Let’s talk strategy. Call 210-644-4313 to review your deal, ARV comps, budget, and exit. We’ll help you choose the right capital stack for speed, cost, and certainty of close.
Tags: Contact, Strategy
Resource: 10 Questions to Ask — https://www.investor.gov/introduction-investing/general-resources/alerts-and-bulletins/10-questions-ask-about-investing
16. Can you issue a Proof of Funds (POF) letter?
Yes. For qualified investors, we issue POF letters so you can make competitive offers with credible backing. We may request a brief deal profile to ensure alignment with our criteria.
Tags: POF, Acquisitions
Resource: Proof of Funds (POF) — https://www.investopedia.com/terms/p/proof-of-funds.asp
17. What is a Collateral DNA Report?
It’s our analytics snapshot: comps, value-add scope, risk flags, and exit scenarios to score deal strength and sensitivity—so you can pressure-test outcomes before committing capital.
Tags: Analytics, Comps, Risk
Resource: FHFA House Price Index (context) — https://www.fhfa.gov/data/hpi
18. Do you finance owner-occupied properties?
We specialize in business-purpose, investment-property loans. Owner-occupied loans trigger consumer-credit rules and are handled differently. If your intent is business-purpose, we’ll document that during underwriting.
Tags: Eligibility, Business Purpose
Resource: CFPB Reg Z—Business-Purpose Exemption — https://www.consumerfinance.gov/rules-policy/regulations/1026/3/#a
19. How do rehab draws work?
Funds are disbursed in stages after verified work. Submit photos/invoices; inspections may be required. Approved draws are typically wired within a few business days.
Tags: Draws, Process
Resource: HUD 203(k) Draw Concept — https://www.hud.gov/program_offices/housing/sfh/203k/203k–df
20. Can closing costs be financed?
Often yes, subject to ARV/LTV caps and program rules. We model total exposure—purchase, rehab, fees—against your exit plan to minimize cash-to-close without over-leveraging.
Tags: Closing Costs, ARV, LTV
Resource: Closing Costs Explained — https://www.investopedia.com/terms/c/closingcosts.asp
21. What if my project goes over budget?
Build a 5–10% contingency. If costs exceed plan, we’ll discuss scope changes, reserves, additional equity, or timeline tweaks. Early communication protects returns and schedules.
Tags: Budget, Contingency, Scope
Resource: 203(k) Contingency Reserve — https://www.hud.gov/program_offices/housing/sfh/203k/203k–df
22. Do you allow cross-collateral or blanket liens?
Case-by-case. Cross-collateral can improve leverage or pricing when additional equity backs the loan. We review titles and valuations for all pledged properties before approval.
Tags: Cross-Collateral, Leverage
Resource: Cross-Collateralization — https://www.investopedia.com/terms/c/cross-collateralization.asp
23. Can I close in an LLC? Is a personal guarantee required?
Yes—entities are common. Personal guarantees are typical to align incentives in private lending. We’ll verify signers, authority, and governing docs for a clean, compliant closing.
Tags: LLC, Personal Guarantee
Resource: Personal Guarantee — https://www.investopedia.com/terms/p/personal-guarantee.asp
24. Is a DSCR loan a good takeout strategy?
Often. DSCR loans qualify primarily on property cash flow, not W-2 income—popular for converting flips to rentals. We can size your bridge loan with DSCR refi in mind to streamline the transition.
Tags: DSCR, Exit, Refinance
Resource: DSCR—Real Estate — https://www.investopedia.com/terms/d/debt-service-coverage-ratio-mortgage.asp
25. Do you work with foreign nationals or ITIN borrowers?
Yes, case-by-case. Extra documentation may apply (visa, passport, U.S. entity, or ITIN). Terms depend on experience, collateral strength, and the exit financing available to your profile.
Tags: Foreign National, ITIN, Eligibility
Resource: IRS—ITIN — https://www.irs.gov/individuals/individual-taxpayer-identification-number
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