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Frequently Asked Questions

Why Are Beacon Private Money Loans Good for “Fix-and-Flippers”?

Short-term real estate investors, buy a house, fix it up and sell it for a profit quickly. Our private money loans are ideal since they offer easier qualification and faster closings.

It’s hard for short-term investors to qualify for traditional financing. Because our loans come from private lenders, you can qualify even with poor credit or limited income.

Are There Additional Benefits of Rehab Loans for Fix and Flippers?

Fixer-Upper and Rehab Loans from Beacon Enterprises

Yes, our loans enable you to:

  • Purchase and renovate underpriced assets in poor condition. We look at the initial purchase price and projected sale price after renovations to arrive at a loan amount. Unlike conventional mortgages, the home does not have to be in good condition before you purchase.
  • Get a loan with a short life of 12 months or less – a term that’s perfect for fix-and-flippers to renovate and sell a property quickly.
  • Gain underwriting flexibility – Since we are an asset-based private lender, we are more flexible with loans. For example, if you need a rehab loan that offers interest-only payments and payment of the principal in full at the end of the loan’s life, we work with you.

Compared with banks and traditional financial institutions, we’re much more able to help you profit from renovating an investment property.

Often it seems like banks don’t even want to lend. Instead they always look for little reasons not to!

How Much Can I Borrow?

We usually lend up to 90% of the purchase price or 65% of the “as is” or “after repair” appraised value, whichever is less.

Your deal may be eligible for up to 100% financing for purchase, rehab and closing costs. Call 888-273-3020 to find out if your deal qualifies.

Are There Restrictions on How Loan Funds Can Be Used?

Investors often use rehab funds to cover the repairs and the full purchase price of a property.

We also offer rehab loans that are specifically for making repairs to a property. In all cases, the property must be one that the owner will not occupy.

What if I’m Looking to Launch a Home Flipping Business, But Need Some Cash to Start?

Our private money loans are the way to go! We provide you with the funds to do it all:

  • Secure a property.
  • Start and finish needed repairs and renovations
  • Get your single-family home, duplex or apartment building on the market.
  • Bring in one-time or repeat income along the way.

How Does Beacon Enterprises Differ From Traditional Lending Sources?

At Beacon, we often loan to borrowers who were turned down by traditional lenders. We work with you to address credit, income or other issues.

Is it a Good Time to Start Investing in Real Estate?

Yes, it’s the IDEAL time to invest in real estate! IDEAL refers to Income, Depreciation, Equity, Appreciation and Leverage.

In investment circles, it’s said: “Real estate has created more millionaires than any other investment vehicle.” That’s as true today as it was decades ago.

In recent years especially, real estate has proven to be a sound investment. Benefits of real estate investing include:

  • Tax benefits
  • Appreciation
  • Cash flow
  • Passive income
  • Investment secured by the collateral asset.

What are “Bridge Loans?”

An investor looking to fix and flip a house doesn’t need a long-term loan. When you  need financing quickly, but may want a longer-term funding solution later, choose our bridge loans.

With a private bridge loan, you quickly gain access to immediate cash flow to fill gaps in financing. Bridge loans give you the flexibility to “bide” short periods of time before you secure new financing.

Who Should Consider Private Funding?

Anyone who wants to get into real estate investing. As an asset-based lender, we tailor requirements to your needs, regardless of credit scores, capital or experience.

Private loans fit borrowers who are:

  • Short-term fix-and-flippers looking to purchase, renovate and sell a property quickly (often within a year)
  • Longer-term investors looking to “buy and hold” who can’t qualify for traditional financing.

Advantages of working with private money lenders like Beacon are:

  • Short-term financing options and a fast approval process. Our loans are usually approved and issued in 5 business days.
  • Pre-qualification takes only minutes. We offer you a streamlined application process and fast closings.
  • We loan to borrowers that traditional lenders have turned down.

What’s the difference between private money vs. hard money loans?

Private money comes from private sources such as busy professionals, retirees, and wealthy investors. Hard money is most often borrowed from non-bank financial institutions.

Private money offers you more flexibility and is usually offered without traditional qualification guidelines required by a bank or lending institution. The interest rates and fees associated with private money are generally lower than those associated with hard money.

In addition to higher rates and fees, most hard money lenders expect to see their loans repaid quickly, in as little as 6-months.

Both private money and hard money loans are based on the quality and value of the asset, although private money lenders will often lend up to 90% of the value of the property (and sometimes up to 100%), while hard money lenders often lend no more than 60-70% of the property value and may require collateral in addition to the property.

Questions? Call 888-273-3020 for answers.

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