What is a hard money loan?
A hard money loan is a loan acquired through a private lender instead of through a traditional bank. Hard money loans are typically asset based, which means our primary focus when determining a loan amout is based mostly on the value of the collateral itself.
How do Construction Draws (Holdbacks) work?
Construction funds (Holdbacks) will be dispersed utilizing Draw Requests. As you complete work throughout the project, you will submit a Draw Request. Once Black Label Capital, LLC receives this request, and all required documents, an inspection is scheduled. After a successful inspection, BLC transfers the requested amount to the borrower. Please ensure that all lien releases, city inspections, receipts, invoices and Scope of Work are submitted with the Draw Request. Failure to submit these documents can lead to a delay in dispersing the funds.
What type of hard money loan options does Black Label Capital offer?
We offer the following loans:
Fix & Flip
Cash Out Loans
Cash Out Refinance
Terms & Fees
-Lender Administration Fee: $1,395
Do you offer loans in 2nd lien position?
No, we only lend in 1st lien position.
What does Loan To Value (LTV) and After Repair Value (ARV) mean?
Loan to Value: The percentage of the loan when compared to the After Repair Value of the collateral. We always lend based on the ARV.
How quickly can you fund a loan?
A typical loan can be funded in 5-7 days.
What is the loan application process?
- Borrower completes loan application (https://www.blacklabelcapital.com/loan-application)
BLC conducts a preliminary review of the property and submits a Funding Offer to the Borrower
Borrower signs and returns Funding Offer along with required documentation
BLC verifies the condition and After Repair Value (ARV) of the property
The loan funds and the borrower begins the renovation
What is used as collateral for my loan?
The subject property you are requesting a loan for will be used as the collateral.
What's the benefit of having an appraisal conducted?
An appraisal is a critical step in the lending process. Not only do we, the lender, want to ensure that we are lending on the correct After Repair Value, but we also want to ensure that the borrower has a clear understanding of what the value of the property will be. Unfortunately, we see a lot of borrowers who get excited and overvalue a property. If the borrower can't sell the property for what they initially thought, then they have a serious situation on their hands. This is not a situation we want our borrowers to be in.