The Sweet Spot
We get a lot of phone calls and emails asking what types of loans we're looking for. We have the capacity to make loans in 14 states across the US, up to $5,000,000. However, this is constantly changing depending on local economies and the performance of our existing loans. Here is a summary of what we're looking for right now.
Loan Size Right now were targeting loans around $250,000. 250K is ideal, but we will consider loans in the $100,000 to $400,000 range.
Location Our primary focus is on deals in OR, WA, and TX. We will also consider loans in CA, NV, and CO, depending on local market trends.
LTV Generally speaking, we like to see deals up to 65% LTV, including points and fees. This number varies depending on the location and property type, but 65% is a good starting point.
Exit Strategy As always, this is critical. We will not make a loan unless we think the borrower can exit the loan within the requested term (ideally between 1-2 years). A well thought out exit strategy with a back-up plan is one of the most important parts of any loan.
Property Type We consider most property types, including residential property for investment purposes. We only consider owner occupied property in OR and NV with verified income. Raw land, lot developments, specific use properties, and owner operated properties are difficult in this market, and these types of deals require a substantially lower LTV.
