Frequently Asked Questions
A hard money loan is a short term loan secured by a “hard asset” like commercial or residential real estate. A hard money loan is also referred to as bridge loan, private capital loan, or private loan. A hard money loan is a first position lien/mortgage on investment real estate. A hard money lender looks to the property as the primary collateral as opposed to the borrowers credit score or other factors. A hard money loan is an alternative to a traditional bank loan. Hard money loans are a faster, simpler, more flexible way to secure funding for real estate, but as a result have higher interest rates than a traditional bank loan.
Klinkloans Fund LLC is a direct funding lender/principal. Mike Zins, Dixye Wilson, and Jean Klinkhamer are employees of Klinkloans Fund LLC.
Mike Zins (NMLS#183815) and Jean Klinkhamer (#1504656) are also mortgage originators licensed by Stewardship Mortgage. Stewardship Mortgage LLC is an Equal Housing
We are currently licensed to lend on properties in the state of Arizona.
Yes, we require a personal guaranty by all borrowers and their spouses, and principals of a borrowing entity and their spouses (if applicable).
It depends! Most of the time we will require 20% down. However, if you have other collateral that we can place a lien on, this could potentially decrease your down payment at the closing table. We also have a 100% financing program for borrowers who have closed at least 2 loans with us.
At this time, we are unable to lend on residences that will be owner occupied while our loan is in place, and manufactured / mobile homes. Homes that are located in a rural area of town will be considered on a case by case basis.
We must be able to place a 1st position deed of trust on a property for our loans. However, sometimes we are able to place a 1st on one property, and a 2nd lien on another property. One advantage of hard money loans is the ability to be flexible – we would love to look at your specific scenario and see if we can assist you in finding a creative solution!
We can lend to both individuals and entities.
Yes. Payments are due on the 1st of every month. We have auto debit ACH so you don’t have to write a check or worry about your payment being late!
No, our loans are business purpose only. A borrower must not reside in the property while our loan is in place.
We fund as fast as 2-3 business days (this is contingent on title being able to issue a title commitment and close that fast as well).
For single family residences located in Maricopa county, we conduct our own in house valuation on the property. An appraisal may be required on a case by case scenario (specifically if it’s located outside of Maricopa county, or if it’s not a Single Family Residence, etc).
Yes, we lend to borrowers who are doing their first real estate investment deal.
Our loans terms are typically anywhere from 6 months up to 12 months. Certain projects can receive up to 24 months, but this is decided on a case to case basis.
Yes, we offer loan extensions for free. This is up to the lender’s discretion based on:
- Have the payments been made on time?
- Have improvements been made to the property (if it’s a rehab/construction loan)?
- Is the market stable in the lender’s opinion?
- Is the loan interest rate still priced appropriately for the market?
Yes. You can see more information on our construction loans here.
Draws are disbursed as a post construction reimbursement. Improvements must be made on the property first, then we lend a portion of the cost that was spent for those improvements.
Yes, we do look at credit. We can accept an existing report dated within the last 90 days, or pull a report for you. Credit reports are not required for borrowers for every transaction, but updated reports are required once every 6 months.
All of our loans will have minimum interest – meaning there is a certain amount of days interest that we will collect on the loan before it is paid off. Because our origination fee is so low, this is where we are compensated for providing the loan.
Outside of collecting our minimum interest, there is no prepayment penalty for paying off a loan before it’s maturity date.
You can contact me here and send me:
- Your name, and the name of the entity you will be using (if applicable) and any partners who will be involved in the project with you.
- Tell us about your experience as a real estate investor – please send a list of your last 3-4 deals you have completed (if applicable). Please label what type of investment deal they were (flip, wholesale, rental, etc).
- Send me your approximate credit score (we will verify with a credit report when we work on a transaction for you).
That’s it!
To talk to us about a deal, you can schedule an appointment to talk with us on the phone, or fill out our quick and easy online quote form.
Information we will typically ask for:
- Subject Address
- Purchase Price
- Closing Date
- Do you want purchase money or renovation money?
- What is your renovation/construction budget?
- What is your exit strategy?
- Do you have a partner in the LLC, or a funding partner in the deal?
- What is your experience level as a real estate investor and this type of project?
- What is your credit score?
Here is the standard documentation we need to approve a loan (other items may be required, but this can vary on a case to case basis):
- A signed online loan application that we provide.
- Copy of your purchase contract, all addenda, and assignments (if applicable).
- A title commitment from the title company for the transaction.
- Recent pictures (interior and exterior) of the subject property.
- Evidence of insurance for the property.
- Project’s total budget and scope of work (Paint – $2,000, Carpet – $1,000, etc). This is only required on loans where we are financing the construction or renovations.