Q?Who borrows private money?

There are many reasons borrow private money over what we can consider traditional sources.  TNS borrowers are typically real estate investors who need to close on a property faster than banks can underwrite.  Our typical borrower is purchasing a value add property that needs updating, additional square feet or construction.

The majority of TNS borrowers have solid experience, good credit and cash flow to meet obligations.

Q?How are the loans secured?

All loans closed are secured with deeds of trust and or mortgages recorded against the real estate.  A closing will take place at a local title company who has all documents signed and notarized.  The title company will than record the lien and provide insurance on the lien position.

Q?What type of properties do you lend on?

TNS will originate loans on properties under the value add category.  Properties are typically single family bank owned properties needing updates and or properties requiring additional square footage to bring up to market.

Do to the many issues the lender faces in lending on owner occupied single family homes we do no lend on owner occupied homes.


Q?What is a typical loan look like?

There are no two loans that look the same.  Each loan has unique characteristics that we factor into our overall underwriting.

That being said a common loan may look like this example:

Borrower finds a home that needs updating and purchases it for $200,000.00 that requires a repair budget of $50,000.00.  Once the repairs are completed, in 2 to 4 months, they will market the property for $350,000.00.  He comes to TNS looking for a loan of $225,000.00 for the project.  We will lend him the money typically on a 6 month term and in 1st position.  The loan will always close at a title company.

Q?What kind of rate is paid on the notes?

The rates on the notes are based on the type of loan the lender desires.  Though we consider all the private notes we originate safer than the majority of investment available to the public, there are still risks associated with the notes.

Rates are determined by a risk return matrix that we discuss with all lenders.  Note rates can really run the board from low single digits to high double digits.