Frequently Asked Questions
- What is the first step?
Fill out the one-minute application and get a term sheet in 24 to 48hrs. After that, a loan processor will guide you through the process and requirements to close.
- What is the interest rate and loan term?
Usually our rates are 9% and 1.75%. Loan terms are 12 to 36 months.
- What is the amortization type?
Most of our loans are interest only, which means a fixed interest is paid throughout the term and full balance at maturity. For example, a $100,000 with 12 month term and 9% rate will yield 12 monthly payments of $750 and a final payment of $100,000.
- What are the loan types?
The loan types are Bridge, Fix and Flips and Fix to Rent.
- What happens if I sell the property or prepay the loan before maturity?
In most of our loans there is no prepayment penalty.
- Do you lend to individuals?
Yes, we can lend to individuals. However, most of our deals are closed under an entity (Corp, LLC, INC, etc). These are investment loans, intended for business purposes.
- Do you lend on primary residences?
No. Our loans are only for second homes, investment or commercial properties.
- How much does it cost to close a loan?
Typically RBI charges 1.75% origination plus $1,500 for administrative fees. Other costs to consider are outside attorneys, tittle and appraisal which vary depending on the type of property.
- What is the average time to close a loan?
On residential properties we typically take 24 to 48 hours to issue a term sheet. After approval, the average time to close is 5 to 10 days on bridge loans, 10 to 15 days on Fix and Flips/ Rent and time can vary on commercial properties depending on appraisal, title and environmental conditions.
- Are you a direct lender?
Yes, we are direct lenders. In case we can’t approve a deal, we will refer it to one of our partners.
- Are personal guaranties required?
In most cases yes. However, depending on the area and LTV, it can be evaluated.
- Do you finance a second mortgage?
No, all loans are on first position. Second liens will be referred to one of our partners.