At DCG we are real estate investors at heart. This scenario is rare, and typically is only available to our Joint Venture Partners where we are also participating in the backend profit. Ask us about our JV Partnership program to discover more. *Restrictions will apply

This is really where having a good strong relationship is critical. The more we work with someone the less they have to put down. Starting off most investors are required to put down 20%. As we work together on more projects we will allow the investor to put down as little as 10%.

We absolutely prefer to fund 100% of your construction costs. Actually we have a policy, either we fund 100% or none. The reason is we want to be in full control of writing your GC or contractors their checks when the work is complete. This allows you, the real estate investor, to focus on finding and buying more properties.

While we do pull your credit report, your credit SCORE does not determine whether we will do a loan with you. Your credit score may affect the terms of your loan, such as shorter time frame instead of longer time frames, and maybe more down. What we are really concerned about is your ability to pay your bills. If you are behind in payments today, taking on our hard money loan will not make things easier. We believe that if you are successful and make tons of money, that you will continue to use us for your funding needs!

This can be a two edged sword right? Some people want a timely and consistent payment to be reported, this increases their credit rating of course. However for many investors their Debt To Income (“DTI”) would be negatively impacted if their hard money loans were reported. So for our investors benefit we do not report the loans we have with our investors to the credit bureaus.

Not too many items actually. We are more focused on the asset than the borrowers “credentials” if you will. Primarily we need to see a purchase and sale agreement, executed by the investor and the selling party, the investors drivers license and that is all to get you started! With those documents we can get you started down the path of getting your deal funded.

Right now we are only lending in the states of Florida and Georgia. We are looking at other states in the enar future to begin funding in. If you have a deal in another state and you do A LOT of business in another state then we may consider opening up the door to begin loaning capital in your state, give us a call or shoot us and email!

This is a great question. We are almost a hybrid. A Private Money Lender (“PML”) is one individual or a group of individuals who loan their money, and it’s typically only for investment purposes as well they normally have a very close relationship with those who are borrowing. Hard Money Lenders (“HML”) may also be an individual or a group of individuals however they are running a business. Typically your costs will be higher with a HML instead of a PML, yet the likelihood that the HML will have unlimited funds for your deals is much higher than a PML.

This is an excellent question. There are two typical costs most investors want to know. One is the Rate or the interest rate, the other are the fees or origination points. Our rates are based on experience and how often you use us. We can go as low as 8.99% and as high as 12+%. Our fees are set with our Loan Originators, so having a discussion with a Loan Originator will be critical in understanding your points. It all boils down to relationships.

Well think of it this way. If you had $100,000 you could go out and buy a small renovation property all in cash and you would not have to make any payments. Or you could leverage our money and our capabilities to help you do two or maybe even three projects with the same amount of money. As a sophisticated real estate investor you understand the power of knowing your cash-on-cash return and thats what we help our investors realize

Ahhh yes so many different terminologies and meanings. Depends on who you speak with. If you are speaking with a mortgage broker those loans are synonymous with the underlying collateral or property. If you speak with a real estate attorney they will tell you its the purpose of the loan. Based on our legal team and understanding of the law (right now) residential loans are consumer loans. Meaning a residential loan is where the borrower will live in the property as their primary place of residence. A residential loan will always be a Single Family Residential (“SFR”) property, and never a commercial or multi-family property. Also residential loans are strictly governed by state and federal agencies making them very stringent and hard to get, especially for investment purposes. A commercial loan will be to business entities for business purposes. Obviously commercial loans hold commercial properties as the underlying asset. However in the fix and flip space, there is a unique carve out for business entities collateralizing single family residences for commercial purposes. Legally and logically we offer commercial loans only to businesses, for business purposes secured to SFR’s.

If you read the question above this is why we structure our lending the way we do. As long as we are in the business of making commercial loans, to business entities and that entity is signing disclosures that no one in the entity will be living in the property then we are not required by state or federal law to be licensed, even if the underlying asset is a single family residence. Should the law change then we will take appropriate steps to stay within the law.

We get our capital through multiple sources. First and foremost we manage our own private investment fund. The funds investors are people that we have a relationship with and whom we have offered the opportunity to invest with us. Other sources of capital come from hedgefunds, Family offices and individuals who simply want to buy performing notes.

We can resolutely say a resounding no to this question. That being said our loans are higher interest rates than what you would find at a bank. Why is that? Well we only serve the investment community, we do not offer loans to people living in their homes. We can provide capital for deals that cannot wait a month to close, as well as we can provide the renovation capital too.

We find that there are three reasons why someone would pay for a hard money loan. #1 They need the money NOW. Real estate investors typically find deals, where there is a lot of competition. Being able to close quickly allows the investor to confidently offer to buy a sellers property at the best price possible. #2 They need more money than they have or banks will lend. Normally a bank will not lend on a fix and flip. If they do, they typically require 30 -40% down and the investors arm, leg and first born child… it’s a little overboard don’t you think? #3 Lastly They want to make the money that they do have go farther. If an investor has $500,000 they could buy 1 property in cash for $500,000 or they could buy 4 properties, putting $100,000 down on all 4 properties, and still have $100,000 in reserves. This is the power of leverage.

We look at several depending on your strategy and exit. The one metric that we really focus on is the after repair value. As a private money lender in Florida and Georgia, we are focused on asset underwriting, not the investors credit. What this means is that we are really concerned with the finished product and what it will sell for in a given area. Under or over repairing is always an issue and it is a moving target. Understanding a property’s after repair value is critical in determining if the borrower’s plan and project fits and meets the areas demand.

Many investors choose to get a hard money loan to make their cash go further. Let’s say you have $500,000. A wise investor knows how to smartly utilize leverage. This means you will always want capital set aside in reserves. Now the investor could put $500,000 into a property all cash. They may own it free and clear, however the name of the real estate game is control, and the more properties you can control the quicker your families generational wealth will grow. Now take that same investor and utilizing leverage they could take the same $500,000, put 20% down on 4 properties, and still have $100,000 in reserves for “whoops” factors. This is smart as well as sophisticated.

There are many “hard money lenders” in Florida and Georgia. Every lender has different guidelines and requirements. The one key reason that many investors keep coming back to us is the fact that we are a local lender. We are local in Tampa Bay Florida and we know the area. We lend all over the state of Florida and Georgia, and we have experienced teams in both states to help us do what we do. Another BIG reason investors continue to come back is because we are direct lenders. This means we have our own capital and we are not “brokering” out another lenders funds.
This is where things can get interesting and exciting. We offer purchase only loans, construction only loans, and purchase and construction loans. We have 6 month up to 30 year options. We have amortized and interest only loans. We always want 1st position but in some cases with very experienced investors, whom we have a long standing relationship with, we even offer GAP funding options! Contact us today and we can connect you with one of our experienced Loan Originators to find out how we can help you build, protect and preserve your families generational wealth.
Because our underwriting is asset driven, a very large part of that asset valuation is the after repair value. While we have many borrowers who come to us with no experience, when they have a vetted contractor working with them, and they are involved with a local real estate investment club we find that their ability to complete a project on time and on budget exponentially increases. Because of this borrowers with much experience receive preferred pricing and options for their projects. The fastest and easiest way to build those options are establish a relationship today and utilize DCG for your next project!

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