frequently asked qustions…
f.a.q.
You have questions. wE have answers.
Whether you missed an answer during our conversation, or just need to read the answer to your question again, here is a list of many of our Frequently Asked Questions. If you can’t find what you’re looking for, please email us with your questions, and we’ll get you the answer right away.
Answer:
Our application asks you to provide a detailed summary of your business and financial position. So, it would be helpful if you had:
- Recent statements for your bank, savings, investment and retirement accounts
- Online access to the institution(s) you have your accounts with
- Recent tax return for your business and personally
- A sales or assignment contract and a construction budget
These are helpful but can be submitted later if not available at the time of your application.
Answer:
We use your application and other information to understand your financial position and the experience level you have in the real estate business. We also will run a credit and background check. This usually takes us a day to complete with a second day to come out and inspect the property. After that we can approve your loan very quickly. From there a loan closing can occur within five to seven business days.
Answer:
No, we do not require an appraisal for non-owner-occupied residential property or building lots. For these properties we provide a FREE internal property/real estate evaluation. For commercial property or multi-family properties, we may require an appraisal in some cases.
Answer:
RushFire makes sure that all our customers know what our fees are BEFORE they agree to take a loan from us. We will disclose all fees ahead of time.
Our current fees include:
- Application fee: $350.00 per application
- Proof of Credit Letter Fee: $175.00
- Closing Points: 2% to 4% of the loan amount
- Bank Wire Fee: $50
- Construction Draw Fee: $200.00 per draw request, construction inspection and payment processing
Answer:
Ordinarily, RushFire will require that you have a specific amount of cash equity in each deal we finance. However, for established real estate investors with a successful track record of projects or multiple real estate holdings, we will consider financing of up to 100% of the project’s cost.
Answer:
RushFire requires that all cash equity be available at the closing of the real estate transaction. This could also be in the form of your equity in the subject property or other real estate.
Answer:
We typically require monthly payments of interest only. In the case of experienced real estate investors with a demonstrated history of successful projects, we can consider interest paid at the maturity of the loan.
Answer:
We calculate interest on the 10th of every month and is based on the outstanding principal balance as of that date. We then will send you an invoice on the following business day for payment on the 15th. In most cases we require automatic ACH withdrawals from the bank account you provide.
Answer:
It’s important to us to help you understand what your profit will be in any project you want us to finance. We want you to be successful and knowing this information is one of the most important data points you can have. RushFire provides a FREE project profitability forecast for you.
Answer:
Depending on your experience level and scope of work of the project this can be a requirement. However, we are open to discussing with you how the work will be performed and completed for your specific project.
Answer:
No. We only provide business purpose loans on non-owner occupied 1 to 4 family residential properties.
Answer:
Our longest-term loan is currently 12 months. Short-term extensions are possible to assist you in arranging and closing the permanent financing for properties you plan on holding in your portfolio for rental. We will also provide help in finding longer term financing for you from one of the long-term lenders we refer opportunities to.
Answer:
Currently, our lending is limited to the State of Utah. However, for an experienced real estate investor we may consider a loan in a contiguous state provided the investor can demonstrate they have an effective process and renovation / construction team in place. Any out of state loan that we will consider will require a third-party appraisal and property inspection.
Answer:
A hard money loan —— is a short-term loan secured by a piece of real property or another hard asset. Hard money loans are often taken out by real estate investors who need cash to rehabilitate and sell their properties and don’t have the time or patience to wait for a bank. These loans, provided by private money lenders rather than banks, are advantageous because borrowers can get them much more quickly — often in a less than a week — than they can from banks, which can take weeks or months to approve a loan.
Answer:
Rates vary depending on your experience level, cash equity and the current or projected value of the real estate asset you will be using as collateral for your hard money loan. Standard rates are 2% Fee and 12% interest on your outstanding principal. We also typically require interest only payments monthly during the term of your loan.
Answer:
It’s easy — simply fill out our online application. We will then contact you to learn about your business and the real estate project you are seeking funding for.
Answer:
Borrowers must submit information about their investments and finances and put up a predetermined percentage of cash equity into the deal. We are interested in learning about each borrower’s situation and their plan for the real estate investment asset they’re looking to acquire. We always start with an application and an internal evaluation of the real estate asset you are looking to acquire. From there we try to develop a creative funding solution that meets your needs. We then clearly outline the terms and conditions in writing so that you can make the most informed decision before you move forward with funding.
Answer:
These terms are interchangeable in the industry. Hard money loans are also known as bridge loans, gap loans and swing loans.
Answer:
A private money lender can get you the money you need quickly — much faster than a bank can. Private money lenders move much faster than traditional banks. There is no loan committee to deal with and if you are able to provide all required information within a few days we can be off and closing your transaction in less than a week. No bank can compete with that. The time you save can mean the difference between a successful transaction and the deal falling through. When you need a short-term residential or commercial real estate loan, a private money lender is your best bet.
