SFI Loans

What type of loans do you provide?

We provide hard money loans loans for purchase and rehab of single family, 1-4 units, non-owner occupied properties.  

We also provide 30 year loans for tenant occupied single family 1-4 unit properties.

What is a hard money loan?
A hard money loan is a type of real estate loan where the borrower receives funds secured by real property.  Hard money loans can be issued by private individuals or institutions.  They typically have higher interest rates and fees than other real estate loans because of the higher risk and shorter term of the loan.  Loan amounts are based on a percentage of the purchase price and a percentage of the after repair value (ARV).  Typical amounts are 80%-90% of purchase price plus 80%-100% of the rehab construction costs.  Those combined loan amounts are generally limited to 70% of the ARV.

Borrowers use hard money loans because they fund faster than typical mortgages, often closing within 1-2 weeks.  Borrowers are also required to provide much less paperwork when applying for a hard money loan. 
I buy rental properties. Where can I get the best terms?
Banks and credit unions generally provide the best rates and terms on single family rental properties.  Qualifying for these loans is typical to qualifying for a home loan.  You will need to have sufficient, recurring, verifiable income, good credit, and a debt to income ratio within the bank’s guidelines. 

If you don’t qualify for a bank loan, commercial loans are available that rely on the income from the property only, not your personal income.  The rental income will need to be sufficient to pay the principle, interest, taxes, and insurance.  There will probably be a required debt service coverage ratio applied as well.  These loans typically have a higher interest rate than bank loans, but you have the ability to purchase unlimited number of properties. 
Do I need experience?

Having a history of buying, rehabbing, and successfully selling investment properties over the past 24 months helps, but it is not necessary.  More experienced borrowers will receive more favorable rates and terms than inexperienced borrowers.

How do I determine the ARV (After Repair Value) of my property?
1) There are a number of investment real estate software companies that provide a monthly subscription service that can provide current real estate sales information to help you evaluate the ARV.

2) Call a realtor.  Realtors have the ability to create a Comparative Market Analysis from the multiple listing service database.  If a realtor is familiar working with investors, they will know how to select the appropriate comparable properties to help you evaluate the ARV.

3) Pick up the phone and call us.  We can help you calculate the ARV. 
How are the interest payments calculated?

Interest payments are interest only.  None of the payment goes to reducing the principle.  

To calculate the monthly payment, multiply the loan amount by the interest rate and divide by 12.

What is the term of loan?

Loan terms can vary from 6-12 months.  

Loans can be paid off early without penalty.

What kind of paperwork do I need to provide?
Typically the only documentation we require for fix and flip loans is:
1) Executed Purchase Contract
2) LLC Formation Documents
3) 2 Most Recent Bank Statements
4) Driver's License
5)Title Company Contact
6) Insurance Agent Contact
7) Loan Application
What type of properties do you lend on?
We lend money on single family residential (1-4 units), non owner occupied properties.

Do you provide rehab funds?
Yes, we will lend you rehab construction funds as well.  
We typically lend 80%-100% of your construction budget subject to a maximum 70% ARV (After Repair Value). 

How much money will I need?
For all loans, you will need a down payment at closing plus other closing costs.  You will also need cash to pay the interest during the term of the loan as well as other incidental expenses incurred while you own the property.  The amount of cash you will want in the bank prior to closing is typically 20%-25% of the expected project cost (purchase price + rehab cost).  Each project is different, but if you keep on budget and schedule this should be sufficient cash to get you through the end of the project.
How fast can you close?
We can close loans in Texas in as little as 3 days for fix and flip loans.  
Other states generally require 10-14 business days, but can be rushed if need be.  
It is always best to contact us before you execute a contract and let us know if you will have a short window to close by. 
What are your interest rates?
We have multiple loan programs with different interest rates depending on borrower experience and geographic location.   Rates start at 8.5% and go to 12%.  Most loans have a 2% origination fee. 


Mike has been helping investors and home owners purchase and refinance their real estate holdings since 1998 when he joined Goldman Sachs Commercial Mortgage. He moved up to Credit Suisse/First Boston as Director of Commercial Loan Origination for the southwest U.S. Over the years and tenures at two other large lending institutions, he has accumulated broad based experience in commercial and residential real estate lending. 

For the past 3 years, he has enjoyed working directly with single family investors helping them develop and build their businesses and making sure they provide the most competitive loan products for their clients and each of their transactions closes smoothly.  He started SFI Loans, LLC at the beginning of 2018 after successfully launching and running 3L Finance here is Dallas. 

Early in his career he was a construction engineer, home builder, and oil operator in his family’s oil company. Mike has a BS in Civil Engineering from SMU and an MBA from The University of Texas at Dallas.

The Loan Process

Prior to loan submission, we have a quick loan data input form.  With that information we can underwrite the loan and provide loan terms.  Once you accept the loan terms, you fill out a loan application, submit LLC formation documents, 2 months bank statements, 2 recent bank statements, driver’s license, executed purchase contract, property insurance contact information, and title company contact information.  We take it from there. 

Minimum Credit Score Requirement 
& Loan amount

Generally, we are looking for at least 640 with a minimum loan amount of $75,000.  We are more concerned with recent credit events.  If you have missed any mortgage payments or have had a property foreclosed on, or you have a recent bankruptcy, we will ask for additional information.