FREQUENTLY ASKED QUESTIONS

What is private lending?

Private lending is a form of real estate loans offered to individuals, partners, or companies for the purpose of purchasing, renovating and transitioning to a desired exit strategy. Most loans are for non-owner occupied property investments such as fix and flips or long-term buy and hold rentals. Loans are generally short term ranging from 6 to 12 months in length. Borrowers utilize private lending for the flexibility at which they can work with borrowers. They provide timely funding (as few as 3 days), the ability to loan on the repair costs, and often offer expertise in the markets interested in. 

Are There Any Credit Score Requirements?

There’s no minimum FICO score needed to qualify for our hard money loans.

How are private lending notes secured?

Private lending notes are backed by a first lien position of the physical asset that is borrowed for. Borrowers are able to borrow 100% of the purchase plus rehab cost as long as the property evaluation holds a 70% Loan to Value (LTV) or less. In other words, the purchase plus rehab must not exceed 70% of the After Repair Value (ARV). Rehab funds are set aside as a deferred distribution and only distributed to the borrower in small increments to ensure the money is invested into the property borrowed on. Interest is paid on the entire investment from the start date of the loan and until the entire principal is paid off. The assumed 30% equity in the investment is intended to weather any short term fluctuations in the real estate market, legal fees and real estate fees associated with a foreclosure, and potential damages that may occur.

Do You Offer Hard Money Loans In Other Areas of Texas?

We service loans throughout Texas and have previous experience in Houston, Austin, San Antonio, and DFW.

Does Crown Capital Resources, LLC ensure the properties are secured by a written contract?

Each property funded is bound by a written contract required by Crown Capital Resources, LLC. Any loan borrowed to a business name requires a personal guarantee. The contracts are drafted and fulfilled by CCR's attorney.