Common Questions
Helpful insights about our lending solutions.
How quickly can you fund a transaction?
We can close and fund in as little as 24 hours as long as all parties (Borrower, Title Company, Hazard Insurance Company, etc.) are able to provide us with the information that we need. In a perfect world, we would be given 2-3 days to make sure everything is ready for closing and loan funding.
Do you require Appraisals?
We do not require appraisals on most of our loans. We prefer to pull our own comps and run our own analysis on the properties that we lend on, though we may ask to see appraisals that have already been completed as they do provide additional information and data points.
Can I get a loan with bad credit?
On most loans we don’t look at or check credit scores as part of our loan evaluation process. Since our loans are asset-backed loans, we look primarily to the value of the asset and the merits of the investment to qualify for the loan.
Why would I want to use Hard Money?
Our borrowers use our money for a variety of reasons, but the most typical reasons are:
● Winning in competitive purchasing situations where fast, no contingency offers are key to winning
● Speed – They need to close fast and can’t wait for conventional financing or for other funds to become available
● Flexibility – We can be much more flexible in the type of property that we can lend on, the time that we need to close, the amount that we can lend and the structure of the loan
● The borrower needs more funds than they can get through a bank or other conventional lender. Most bank or conventional investment loans are capped at 75-85% of the purchase price, while we can often lend 100%
● Property doesn’t qualify for conventional financing due to condition or some other reason
● Make a “Cash Offer” to make their offer more competitive to a Seller in order to try to get a property under contract
● Bad Credit – Borrower can’t get a conventional loan or needs time to get their credit repaired before they can get a conventional loan
What is the difference between Hard Money and Private Money?
There’s really not much difference. The term “Hard Money” typically means that the loan is being made based on the merits of the “Hard Asset” and not necessarily based on the qualifications of the borrower. The term “Private Money” typically refers to the source of the capital being used to fund the loan and to indicate that the source of those funds are not from a bank or other large institution. While those definitions may seem quite different, the reality is that most Private Money loans are based on “Hard Assets”, thus also making them “Hard Money” loans and most “Hard Money” loans are funded with non-institutional capital making them “Private Money”. These terms have become somewhat interchangeable in the industry today. In the purest form though, “Private Money” is a loan made with funds from an individual and not from a fund, a broker or an institution. These are the simplest and most flexible types of loans. SourceOne Financial is a true Private Money Hard Money Lender as the loans we make are funded by the principals of the company and other private individuals.
In what geographic areas do you lend?
The majority of our business is in Utah, but we are also able to lend in California, Idaho and a few other surrounding states for Residential loans (1-4 units) and nationwide for Commercial loans.
What kind of loans will you do?
We offer a variety of loan types to meet the needs of real estate investors, including: (link the below loan types to the “Loan Programs” section)
● Fix & Flip / Buy & Hold Loans
● 100% FIX & FLIP / BUY & HOLD LOANS
● 90% PURCHASE + 90% REHAB LOANS
● Commercial Loans
● Multi-Family Bridge Loans
● Constructions Loans
What types of properties do you lend on?
● Investment Residential
● Multi-Family
● Commercial (retail, office, industrial, hospitality, storage)
● Land
How do I apply for a loan?
We strive to make the loan submittal process as simple and convenient as possible. For the majority of loans, all we need from you in order to review your request and provide you with a loan proposal is the following information. This can be provided via a brief phone call, as a text or through email:
● Property Address
● Purchase Price
● Estimated Rehab Costs
● Description of Rehab Plans
● Projected After Repair Value
● Exit Strategy
● Any Photos or Videos Available
Are there pre-payment penalties?
We do not typically charge any pre-payment penalties.
Is SourceOne Financial licensed?
SourceOne Financial, Inc. is a fully licensed lender with the NMLS and with the State of Utah (License no.: 5627103-NMLC and NMLS ID no.:320102).
Do I need to get pre-qualified?
You don’t need to get pre-qualified as an individual to get a loan. You may want to have us review a property or investment opportunity though in order to get a preliminary loan approval for a deal that you are either making an offer on or have under contract.
Do you provide Proof of Funds Letters?
We can provide a Proof of Funds Letter for you to submit with your offer. We need the following information from you in order to create the letter:
● Property Address
● Borrower’s name
● Offer Amount or Purchase Price
● Loan Amount Needed
● Email Address that the letter should be sent to