The Qualification Process

Summary

Cary Long, Chief Executive Officer with Verdeo Capital, a Sacramento area private money lender answers questions about Qualifying for, Getting In & Out of a Private Money Loan.

  1. Do I need to prequalify for a Private Money Loan?
  2. How Do I get the process started?
  3. What if I have credit blemishes?
  4. Are there any pre-payment penalties?
  5. How long does it take to close my loan?

Cary reviews the answers to each of these questions in detail and reveals that they are able to close most loans within 7 to 14 days.

Call Verdeo Capital today at (916) 580-1240 to discuss your unique situation.


What is Private Lending?

Most Common Scenarios

Qualification Process

Borrowing Process


00:00 Gregory Glacken: Hello and welcome. I’m here with Cary Long, Chief Executive Officer of Verdeo Capital Group, and we’re just talking and I’ve got some questions around pre-qualifying for getting into and out of private money loans. So, Cary, let’s just jump right into it here. I’ve got some questions personally, and I’m sure that our viewers do as well. So let’s just go down the list here.

00:25 Cary Long: Let’s do it.

00:25 Gregory Glacken: Alright. So, my question number one is do I need to pre-qualify for a private money loan at Verdeo Capital?

00:32 Cary Long: Actually no, you don’t. It’s highly advisable, and it’s usually necessary. There’s no cost for it. It gives you a set dollar amount to deal with, so you know what you’re targeting. If you’re going out searching for something that you either don’t qualify for or is out of reach, you’re kind of wasting your time.

00:52 Gregory Glacken: Right.

00:54 Cary Long: So, it definitely improves your bargaining power and it defines your options.

00:58 Gregory Glacken: Okay. So, the key here is it defines the options by knowing what these numbers will allow me to do.

01:03 Cary Long: Correct.

01:04 Gregory Glacken: Okay, very good. Okay. And then, how do I go about that process? So let’s just say that, I know I need to do it now, okay, to be able to find out what I have the ability to do, but how do I go about that?

01:16 Cary Long: Well, first off, most easily, is complete the loan application on our website. Now, if completing a loan app on the website is not a comfortable thing for you to or you wanna try to handle it in a different way, just give us a call. You can call one of our representatives at 916-580-1240. The info that’s needed is really basic, it will only take a few minutes to complete. At a later time we’ll get some more in depth information if necessary, and we’ll let you know if that’s needed.

01:47 Gregory Glacken: Okay. Alright, that sounds pretty straight forward. So okay, good. Well, let me throw a curve ball. What if I’ve got a little bad credit situation, could be a short sale, foreclosure, bankruptcy, some kind of blemish from back in the past, maybe a medical deal? Tell me about that, what if I have bad credit, does that disqualify me?

02:04 Cary Long: No, not at all. Although credit score is important and it’s considered, it’s less of a factor in a private lending situation than an institutional situation. There’s adjustments that can be made, adjustments to the terms, the rates, the down payment, the loan to value. There’s a great deal of adjustments that could be made for that. We understand that that’s why you’re considering private funds. Otherwise you’d be walking into an institution and obtaining a much lower rate. This is kind of a band-aid, and it’s to help get you through the correction process or whatever challenges you’re faced with.

02:49 Gregory Glacken: Okay, alright, fair enough. So whereas I might not have qualified for a conventional situation before, it’s more than likely that I may be able to qualify with private money in this situation.

02:49 Cary Long: Right, right. There’s a little bit more to this. This is an equity type of lending, so there’s more security to the transaction which allows us to be more flexible, and we’re also gonna look at the exit strategy. If you’ve got poor credit and poor credit scores right now, what’s it gonna take to get you to be able to get out of this loan? Our goal is to see that you can conclude this process and get into a better loan. We love payoffs, we love to see the loan paid off. It means that we made a good decision upfront and it was a good investment quality loan for the investor that’s actually putting the funds out.

03:37 Gregory Glacken: Makes sense, it’s a win-win for everybody.

03:38 Cary Long: Correct.

03:39 Gregory Glacken: Sounds like there’s a lot of options around this, so it’s all very situational, so give you a call.

03:45 Cary Long: Right.

03:45 Gregory Glacken: Okay. Alright. What are the prepayment penalties? Some loans have prepayment penalties, others don’t. What’s your general experience with the loans that you fund?

03:53 Cary Long: Well, typically we don’t have prepayment penalties.

03:56 Gregory Glacken: No?

03:56 Cary Long: No, generally our policy is that we wanna see the loans getting paid off and we don’t feel the borrower should be penalized. Because they have the fortune of having enough funds or improving their credit situation, it’s kind of a reward thing, in my opinion. So definitely no… Typically no prepayment penalties. That’s really within our policy.

04:21 Gregory Glacken: Alright, very straightforward, very good. Now, how long would it take to move through the process and actually get the loan closed?

04:29 Cary Long: There’s a lot of different factors that come into play with that. Normally it’s 7 to 10 days. There’s some outside influences. If it’s purchase transaction, you’re gonna have an escrow company, a listing agent, a selling agent, a seller moving out. And then, also the borrower, as far as the return time on requirements that we’re asking for documents, so really it has to do with borrower participation, but if participation is there, good communication is there, we’ll have it wrapped up in 7 to 10 days.

05:01 Gregory Glacken: Wow! That’s pretty fast, and I’m sure there’s other inspections and all other good stuff that the borrower maybe considered doing. So, it seems like 7 to 10 days is aggressive. Sounds like it’s very fast, but it’s also very doable.

05:13 Cary Long: Typically faster than what you’ll need it, but usually when private money comes into play, the borrowers already exercised going through the institutional route and now it’s become a rush. So at times it’s a mad dash and we’re up for the challenge, so 7 to 10 days.

05:32 Gregory Glacken: Alright. Okay, very good. Well, that wraps it up for me. So, folks, thanks so much for watching today. And if you’d like to get in touch with the team over at Verdeo Capital, feel free to give them a call, 916-580-1240. Again Carry Long, Chief Executive Officer.

05:48 Cary Long: Thanks for viewing today.

05:49 Gregory Glacken: Yup. And you can also catch him on the web at www.verdeocapital.com. Thanks again.