Frequently Asked Questions about Hard Money Lending
About Our Process
Question: Are you direct lenders?
Answer: Yes, we are direct private lenders. We are not brokers. We can make same day decisions on loans.
Question: Where do you lend?
Answer: Washington D.C., Maryland, and Virginia
Question: What information and documentation do you require?
Answer: We require authorization for a background check, two years of tax returns, and a personal financial statement.
Question: Do you lend on as-is or the future value of the asset?
Answer: For development projects we will provide up to 80% of the acquisition cost and up to 100% of the construction cost. For stable assets, we will lend up to 65% of the as-is value. For mezzanine financing we will provide up to 90% LTC.
Question: How do you calculate the value of properties?
Answer: We use third-party independent appraisers for each transaction.
Question: What types of properties will you lend on?
Answer: We provide loans for single family homes, rowhouses, townhouses condominium buildings, multifamily apartment buildings, office, retail, as well as commercial and mixed-use properties. We have experience providing debt for almost any type of real estate project.
Question: Do I need to use my own capital?
Answer: Yes, we require that borrowers have equity in each transaction.
Question: What percentage of ARV will you loan against?
Answer: In general we will provide between 65% - 70% of ARV.
Question: What are your rates and fees?
Answer: Our interest rates start at 6.125% and our fees are anywhere from 1-5 points.
Question: Do you pull credit?
Answer: No, we do not pull credit scores.
Timing and Closing
Question: How fast can you fund a transaction?
Answer: Once we receive all the required documents, we can fund a transaction in 5 business days.
Question: How quickly can I get a commitment?
Answer: We can give same-day commitments if we have a completed application, property walk through and meeting with the borrower.
Question: How fast do you provide construction draws?
Answer: We work with borrowers to establish efficient draw schedules. If milestones are met we can get same-day or next-day funds released.
Question: How do I get started?
Answer: You can provide the basic information about your transaction here to get started.
Question: What are the essential steps in the loan process?
Answer: First, you will need to send us the basic information about your property. Once we review the basic details, you will need to submit two years of tax returns, a personal financial statement, a pro-forma, and authorization for a background check. Once our underwriting team approves your transaction we will issue you a term sheet. After you sign the term sheet and we complete the appraisal we are ready to go to closing.
About Our Company
Question: How long has the company been operating?
Answer: We have been lending in the Washington metro area for over 30 years. We founded Great Jones Capital in 2015.
Question: Can we partner with you?
Answer: Yes, we are excited to partner with developers who have strong track records. We bring a tremendous amount of value in addition to our capital.