Frequently Asked Hard Money Loan Questions

As you no doubt know by now, Black Label Capital is a hard money lender. We provide funding for Fix & Flip, Ground Up Construction, Bridge Loans, Rental Loans, and other kinds of loan programs to real estate investors.

We work with a variety of investors and entrepreneurs, from seasoned investors cranking out hundreds of projects a year to fresh entrepreneurs getting into the real estate business. And over the years of partnering with investors, regardless of experience, we have been asked a lot of questions. Whether you choose to work with BLC or not, we wanted to make your experience of working with a hard money lender as smooth as possible by providing answers to the most common questions.

How do I get pre-qualified with Black Label Capital?

One of our tenets here at BLC is being easy to work with. The simplest way to get started is to fill out our online Loan Application. Give us as much information as you have. The more complete, the faster we can get you pre-qualified and provide rate and terms. Information such as property address, credit score, purchase price, as-is value, rehab budget, after repair value, and real estate investing experience are some of the most important info for us to evaluate your deal as quickly as possible.

What is your loan application process?

To keep things as simple as possible, here is our loan application process in a nutshell:

  • You submit a loan application.

  • We gather supporting documents.

  • We evaluate the information provided, including collateral and send a preliminary offer of funding.

  • NOTE: All offers are subject to our due diligence checklist, including 3rd-party credit check, appraisals, etc.

  • Borrower accepts our offer.

  • BLC orders an appraisal.

  • BLC approves funding and the deal proceeds to closing.

What does Black Label Capital consider when evaluating hard money loans?

When we say that BLC is a true lending partner we mean it. When you succeed, we succeed. We understand that this is a symbiotic relationship and we value long-term relationships. With that said, in order to help facilitate a positive outcome, we need to do our due diligence to protect you and ourselves from making poor business choices.

Some of the most important aspects we consider are:

  • Your ability to repay.

  • Cash reserves and liquidity.

  • Credit score.

  • The property as collateral, including property value, location, type of property, etc.

  • Real estate investing experience.

  • NOTE: if the investing experience is light, we are willing to look at other areas to make up for this, such as larger down payment, high cash balance, good credit, etc.

No matter your level of experience, we want to encourage you to submit a loan application and build a long-lasting relationship with BLC.

What are your loan terms?

BLC offers many types of hard money loan programs to help investors with various needs in building their real estate business. Whether you are looking for Fix & Flips, New Construction Loans, 30 Year Rentals, and more, we encourage you to look at our hard money loan options page.

Of course terms, costs and fees will vary depending on the loan program you choose. Listed on our loan options page are the different loan programs we offer, loan description, along with ranges in our rates, terms, fees and limits.

Go ahead and check out the programs we offer to find which option best fits your investing needs.

How long does it take to close on a loan?

BLC can close a loan in as little as 5-7 business days. Of course this assumes we have all documentation signed correctly and returned in a timely manner. Lead times may vary by loan program, for example construction loans typically take longer.

The key to quick closings is YOU. As your partner we want to close on the loan just as quickly as you do. Here are some ways you can assist us in getting your loan closed as soon as possible:

  • Completely fill out the loan application.

  • Provide all the documentation requested, such as LLC/Corporate formation documents for entities.

  • Proof of insurance. Do not wait until the day of closing to lock in insurance. We will not disburse funds on the loan without insurance in place.

  • Getting the Scope of Work/Budget to us quickly. This is required to order an appraisal. NOTE: without a budget, we cannot evaluate the deal, which slows down closing.

The quicker you can complete your part, the quicker we can get the loan closed and funded.

Of course, each transaction is unique and is handled on a case-by-case basis, but generally, if you can get us everything requested, we can do our part faster.

About Black Label Capital

If you are looking for a true lending partner, look no further. Black Label Capital strives to offer creative, collateral based private lending solutions. We are a Veteran owned hard money lending partner based in Dallas, Texas, who has years of construction, fix and flip, lending and underwriting experience. We've been there, and we know what it’s like to need funding for a project. Every situation is different, and we understand that. Our objective at Black Label Capital is to provide you with flexible financing options so you are able to achieve your goals.

Ready to grow your real estate business in 2021? Let’s chat today to see how we can help with your funding needs.

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