The approval process at Loan Fund 1 starts once we receive a completed application including detailed information (i.e. construction budget, rental income schedule, if applicable) about the property. Since Loan Fund 1 is an asset-based lender, approvals are based upon the underlying value of the collateral securing the loan and not the credit score of the borrower(s). Please list any additional collateral you wish to be considered in the approval process. Borrower(s) must demonstrate they have the cash available to close on the transaction.
A Loan Fund 1 representative will perform an onsite visit of the property, as well as reserving the right to make approval subject to an independent 3rd party appraisers value of the property.
Loan Fund 1 issues a Terms Sheet outlining the financing terms and conditions signed by both parties.
We want to hear about “Your Exit Strategy” for the project. Since the term of our loans range from 6 months to 2 years, it’s very important we understand how you plan on paying us back, whether it’s by selling or refinancing the property (or another means) before the term is up.