We have compiled a list of our most frequently asked questions. Please feel free to reach out if your question is not listed.
Frequently Asked Questions
What is relationship lending?
Relationship lending is a lending method where long-term borrower relationships are preferred over quick profit. This approach helps us understand a borrower's needs, thereby tailoring our lending solutions accordingly, improving loan approval chances, and enhancing customer satisfaction.
What is a hard money loan?
A hard money loan is a short-term loan secured by real estate, commonly used by real estate investors or developers for quick capital access, often for projects like fix-and-flip, bridge, or construction loans.
How do hard money loans differ from traditional ones?
Hard money loans, although more costly than traditional loans, are easier to secure with less stringent requirements and quicker funding times. They are more dependent on the asset than the borrower's financial situation.
What is the approval time for loans?
At Holt Capital Group, all approvals are guaranteed within 24 hours.
Can I use Holt Capital Group for my primary residence?
No, we fund business purpose loans, hence financing a primary residence is not possible with Holt Capital Group.
How can I request a payoff?
Provide both our payoff email, matt@theholtgroup.com, and our phone number 801-455-1559, to the title company. For self-payoffs, request it from matt@theholtgroup.com.
What should I do if my loan maturity is nearing?
Contact our extension department at matt@theholtgroup.com prior to your loan's maturity date. An extension requires a property status update, title search, and property inspection. The extension is finalized upon signing the extension document and paying the extension fee.
What insurance is needed for the property?
Consult a qualified insurance agent for advice. At a minimum, Holt requires a Landlord Policy with either a vacancy or a construction rider. The policy must cover the full home replacement cost. Lapsed policies will be forcibly replaced by Holt.
Do you lend on purchase price or appraised value?
We usually lend on appraised ARV (after-repaired-value). Thus, if you purchase a property far under its ARV, we may be able to lend you 100% of the purchase price. You will, however, usually have to pay closing costs.
Is there a limit to the number of properties I can buy?
No. Each deal stands on its own. If it makes good loan sense, you will get the loan regardless of how many properties you own.
When is a hard money loan not appropriate?
Hard money is not appropriate in some circumstances:
When you need money long term. Most hard money deals are for no more than 6 months to 2 years.
When the deal is tight. Don't look for hard money loans higher than 65-70% of the conservative property value, hard money lenders aren't interested in losing money, and the only way to insure that is to lend based upon conservative loan-to-value ratios.
Oddball properties. Not many hard money lenders are looking to get involved in farm operations, mobile homes, or
geo-desic domes.
Principle residences. Holt Capital Group, LLC is not properly licensed to provide loans to owner-occupants. We only lend on commercial or investment properties.
