ACAP offers an alternative to traditional hard money lending. In our case, we consider it ‘soft money’ because we have over 50 available capital sources and can offer single digit rates on many of our products. Typical hard money and bridge financing are offered at short terms up to 12 months. We have also developed other relationships to offer these same types of loans at 6 to 60 months. The funds are provided by private investors instead of conventional lenders such as banks. The monthly payments are interest only or principal & interest with a balloon payment at the end of the term.
The amount of money loaned is primarily based on the value of the property. The collateral may already be owned by the guarantor or may be purchased by the guarantor. All loans are based on the LTV (Loan-to-Value). The property may be a refinance, in which the borrower already owns the property, or it may be a purchase transaction. Our investors are primarily concerned with the property’s value rather than the borrower’s credit (although credit is still of some importance to the lender). Borrowers who cannot get conventional financing due to a recent foreclosure or short sale can still obtain a loan if they have sufficient equity in the property that is being used as collateral. When the banks say “No”, we can still say “Yes”