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 up to 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.
Where does Crown Capital Lend?
We specialize in providing loans for properties located exclusively within Texas. Whether you’re purchasing or rehabbing residential or commercial real estate, our focus is on supporting investments throughout the state.
What Types of Properties and Loan Amounts Do You Cover?
Our loans are designed to cover both the purchase and rehab costs for residential and commercial properties. We offer flexible loan sizes ranging from $100,000 to over $3 million, ensuring we can support a variety of project sizes and scopes.
How Much Down Payment is Typically Required?
Clients can generally expect to contribute a down payment of 10-15% of the total loan amount. This percentage can vary depending on the specific details of the project, but we strive to keep entry barriers low to support our borrowers’ investment goals.
What are the Key Requirements for Securing a Loan?
To move forward with a loan, we require a completed loan application and a personal guarantee. These elements ensure we fully understand the borrower’s project and commitment, allowing us to provide the best possible lending solution.
Is Insurance Necessary for the Loan?
Yes, an insurance policy that covers the total loan amount is mandatory. This measure protects both the borrower and Crown Capital, ensuring that the investment remains secure throughout the duration of the project.
What Sets Crown Capital apart from Other Lenders?
Our approach is designed for speed, simplicity, and reliability. We use our own funds for lending and have never missed a committed closing. This in-house funding allows us to close deals quickly—often within 24 hours of title clearance. We eliminate the need for external appraisals or broker price opinions (BPOs); once we underwrite, we commit to the After Repair Value (ARV). Additionally, surveys are only required if the client plans to add square footage, helping to streamline the process and reduce unnecessary costs.
How Does the Loan Servicing Process Work?
We prioritize efficiency in our loan servicing. Draws are processed the same day via ACH, ensuring that funds are delivered directly to the client's account without delay. Moreover, our process is designed to eliminate common bottlenecks—like inspector-related delays—by maintaining a streamlined approach that keeps your project moving forward without unnecessary hold-ups.