Loan Guides Summary
Lenders
Types of Loans
Secured Investment Corp lends on residential property throughout the country. Our loan size generally ranges from $30,000 to $500,000. Our loans are all secured by a first or second deed of trust. We do not lend on owner occupied properties. Our loans are all originated by a business entity. We do not lend to individuals.
Lender Requirements
Our loans are sold to single lenders and are not fractionalized. This means that the minimum investment for a lender to fund a loan is $25,000. Our loans range from six months to 2 years. The lender holds the first trust deed on a loan, and collects the monthly interest payments for the life of the loan. Some states require that a lender be an accredited investor. Also investors in the Secured Investment High Yield Fund must be accredited. Our Funding team can discuss the requirements with you.
How it Works
Cogo Capital, our sister company, has marketing programs and affiliates that provide it with a significant number of lending opportunities every day.
A borrower will either sign in on our web site with a property that they would like to use as collateral for a loan or they will call our corporate office asking about our loan products.
We have a team of outbound sales representatives who process these requests and determine whether the loan fits within our lending criteria.
For those loans that fit our criteria, we then deliver the relationship to our loan officers. They order an appraisal and work with the borrower to finalize the parameters and price the loan. Our processors then work with the borrower to obtain all of the documentation necessary to underwrite the loan.
Our loans are underwritten to determine that they meet our specific lending guidelines. Upon successful underwriting, our loans are originated utilizing funds from our Secured Investment High Yield Fund.
These loans are then sold to individual investors. Our funding department provides the investors with the loan information, and upon demonstrating interest in a specific file, all underwriting information is shared with the lender.
Our lenders generally yield north of 9% on the loans that they fund. All loans are non-amortizing loans with monthly interest payments due. Our sister company, Lake City Servicing, services all of the loans that we originate through the life of the loan, and the monthly payments are collected by them and then remitted to our lenders.
Borrowers
Types of Loan Products
Purchase Loan
We will lend up to 65% of the as is value on a residential purchase, not to exceed 80% of the purchase price being paid. We allow for the cross collateralization of multiple properties on purchase loans which allows for the loan to exceed 80% of the purchase price should 65% of the aggregate value of the properties exceed 80% of the purchase price.
Refinance Loans
We will lend up to 65% of the value of a property on a refinance for items such as repairs to the property or payoff of other loans collateralized by the property. If 10% or more of the loan proceeds are for cash to be paid to a borrower, the loan amount may not exceed 50% of the as is value of the property, or $75,000, whichever is less.
ARV Loans
We will lend up to 65% of the after repair value of a residential property. These loans are used specifically for repairs to the property securing the loan, and the amount is held in escrow and draws are provided to the borrower as the work is performed.
Terms
Our loans range in duration from six months to 2 years. Our loans are interest only payments for the life of the loan with a balloon at maturity. We lend only on real estate in a first position on the secured property. We can cross collateralize multiple properties on a loan. Our minimum loan size is $30,000.
Pricing
Our pricing begins at 9% and 1 point. Pricing is affected by such items as credit score, loan duration and LTV.
We lend money though Cogo Capital. To learn more about Cogo Capital, the Private Money Company, visit our site at: www.cogocapital.com.