Questions? We have answers.
1. What Services Does Crown Oaks Capital Offer?
We offer a range of services tailored to meet your real estate investment needs. Our offerings include Fix & Flip, Buy & Hold, Refinance, Commercial, New Construction, and Private Money Loans. We also provide Proof of Funds Letters, Collateral DNA Reports, Debt Stack Reports, and have high-equity off-market property leads available, so you are not competing with other investors in your area.
2. What are the benefits of private money lending?
Benefits include quicker access to capital, flexibility in loan terms, no minimum credit score requirements, and the ability to secure financing for properties that may not meet traditional lending criteria.
3. Are you a lender or a broker, and are there fees or commissions involved?
We are both a lender and a broker. If we cannot provide the funding you need, we have a large network of other lenders we work closely with and can broker the funds to you. We believe in providing multiple options to investors to secure the best rates and quickest closings. If you require 100% funding, we also offer split equity opportunities to cover your purchase, rehab, and closing costs. Regardless of the loan type, there is always a 3% broker fee, which is standard in the industry.
4. How do you decide the amount to lend?
Lending is based on the asset you have under contract. Generally, we lend up to 90% of the purchase price and 100% of the rehab cost. Ask us how you can get up to 100%.
5. I need 100% financing. Can you do that?
Yes, when joint venturing with us, we can provide up to 100% financing.
6. What does true 100% funding mean?
We will lend up to 100% towards your purchase, rehab, and closing costs, up to 70% of the ARV, when a joint venture is established between Crown Oaks Capital and the borrower.
7. How long does it take to close a transaction from start to finish?
Typically, it takes about 14 days after we receive all required documentation, but collecting all necessary documents can take three to four weeks. The primary factor is how quickly you and your team can provide the supporting documentation. While we can complete our part in roughly 14 business days, investors often take longer to submit everything needed. Aim for 30 days whenever possible. If time is a factor, it likely means you have competition, and competition rarely results in the best deal. Bring your deal to us for discussion.
8. What does FHA Cap mean?
The FHA Cap represents the maximum loan amount allowed in the county where the investment property is located. To find the FHA Cap in your property’s county, click the link below:
FHA Mortgage Limits (hud.gov)
9. What does ARV mean?
ARV stands for After-Repair Value. It is the estimated value of a property after renovations are completed.
10. What does asset-based lending mean?
Asset-based lending means that the loan approval is primarily based on the value of the real estate property under contract, rather than the borrower’s creditworthiness. While the borrower’s ability to repay is considered, the primary factors in approval and loan-to-value determination are based on the property itself.
11. What are your loan terms?
- Crown Oaks Capital offers lending options from $30,000 up to the FHA Cap in the property’s county and can provide additional funding solutions based on the property under contract and the type of loan needed.
- Rates start at 7% annualized interest with an origination fee ranging from 0-3%, and there are no prepayment penalties. (Rates are based on credit score, but credit score does NOT determine loan approval.)
- Loan terms range from 6 months to 2 years for fix & flip projects and up to 30 years for buy & hold or refinance loans.
- Only one loan is approved per applicant until a proven track record is established.
12. Do I need an appraisal, and how much will it cost?
Crown Oaks Capital requires an appraisal before closing. Appraisal costs vary from a minimum of $400 to approximately $700, depending on the property’s location.
13. Is a licensed & bonded contractor bid required?
In most cases, a licensed and insured itemized contractor bid is required before we can process the loan.
14. Is my information kept confidential?
Absolutely 100%! Your privacy is of the utmost importance to us. Any information you provide is completely confidential. If you want to work with a reliable, reputable company that treats you with professionalism, understanding, and respect—YOU HAVE COME TO THE RIGHT PLACE!
I still have questions!
If you have any further questions, feel free to reach out. We’re happy to assist you in any way possible.