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FAQ's
Frequently Asked Questions:
Q-What services does Sandy Beach Capital offer? A-Sandy Beach Capital is both a private money mortgage loan services provider and a certified private money broker and we work exclusively in the Real Estate Investment sector. What that means is that we help investors finance their Fix & Flip, Buy & Hold, Cash Out/Refinance, and New Construction Property deals using mortgage loans from accredited private lenders rather than from traditional banking institutions. The private money lending sector is an alternative source of financing for real estate investment loans. We do not offer consumer loans or loans to individuals. We only lend to business entities like LLC's and Corporations.
Q-What is the process for getting a private money loan? A-Understanding Private Money Mortgage Loans Private Money Mortgage Loans are alternative financing solutions that allow individuals to borrow funds from private investors or companies—offering flexibility beyond traditional bank loans. Here's how the process typically works with Sandy Beach Capital: 1. Finding a Private Lender Your broker will work with Prospera Private Capital to connect you with a private lender willing to fund your loan. These lenders are often individuals or specialized companies focused on real estate investment financing. 2. Submitting an Application Once a lender is identified, you'll complete a loan application. This includes basic details about your financial situation—such as income, assets, and credit history. 3. Providing Documentation To assess your eligibility, you may be asked to provide supporting documents like bank statements, tax returns, and proof of income. Ideally, your bank account should show average deposits that are twice the amount of your debits over the past three months. Third-party platforms like Plaid may be used to verify this information.* * Note: Some banks (e.g., Chase) may restrict third-party access to certain accounts like escrow accounts. This may disqualify your application with some lenders. 4. Getting Approved If approved, the lender will issue a loan offer outlining terms—including the interest rate, repayment schedule, and any applicable fees. * Note: If all required documents are not submitted within 30 days of your application, the offer—including the interest rate—may expire. 5. Closing the Loan Once you accept the offer, you’ll sign the final loan agreement, cover any closing costs, and complete the disbursement process.
Q-What is a Private Funding Services Agreement and how does it work? A-Our Private Funding Services Agreement is the formal contract that authorizes Sandy Beach Capital to represent you as your private funding services provider or private money loan broker. This agreement grants us permission to communicate directly with loan officers on your behalf to help facilitate and streamline the loan process. It clearly outlines: The scope of services we will provide Our fee structure When and how fees may be collected during the loan closing process By signing the agreement, you acknowledge and accept the terms as stated. If you have any questions about the agreement, please don’t hesitate to contact us—we want you to feel confident and fully informed every step of the way. You can review the full terms by clicking the link below. Agreement
Q-What is the difference between Pre-Approval and Final Approval? A-Pre-Approval vs. Final Approval In the Private Money Mortgage Loan process, Pre-Approval and Final Approval are two distinct stages that serve different purposes: Pre-Approval This is the initial evaluation stage, where the lender reviews basic financial details—such as your credit score, income, assets, and the estimated value of the property. If you meet the preliminary criteria, the lender will issue a pre-approval letter indicating the potential loan amount, proposed terms, and any conditions to be met for full approval. Note: Pre-approval is not a guarantee of funding, but it helps set expectations and strengthens your position when negotiating or making offers. Final Approval This stage occurs once all financial and property documentation has been thoroughly reviewed and verified. If you meet the full underwriting requirements, the lender will issue a loan commitment letter with the confirmed loan amount, interest rate, repayment terms, and associated fees. Final approval is a binding commitment and the last step before funds are released.
Q-What is Underwriting and how does it work? A-Underwriting is the process through which a lender evaluates a borrower’s financial profile to determine loan eligibility. The underwriting process for Private Money Mortgage Loans differs from traditional mortgages, focusing more on the value of the asset and overall risk rather than just credit. Here's how it typically works: 1. Initial Screening The lender begins with a preliminary review of your application and financial documents to ensure you meet the basic loan criteria. This includes factors like credit score, income, assets, and the value of the property being used as collateral. 2. Property Valuation An independent appraisal is often ordered to verify the property's current market value. Since the property serves as loan collateral, the lender must confirm it holds sufficient value in case of default. 3. Risk Assessment The lender evaluates the overall risk of the loan by reviewing your credit history, income stability, asset strength, and the property's condition and marketability. This step helps determine how likely you are to repay the loan on time. 4. Loan Terms Determination Based on the risk level, the lender sets the loan terms—including the interest rate, repayment schedule, and any applicable fees. 5. Final Loan Approval If the loan meets all underwriting criteria and the risk is acceptable, the lender issues a loan commitment letter with the finalized terms and conditions
Q-What is the FHA loan cap and how does it affect my mortgage? A-Understanding FHA Loan Limits In the United States, the FHA (Federal Housing Administration) loan limit refers to the maximum loan amount that the FHA will insure for a given property in a specific geographic area. These limits vary by county and property type, based on local median home prices. As a result, some counties within the same state may have different loan limits. Higher-cost areas typically have higher FHA limits, while lower-cost areas have lower ones. The FHA reviews and updates these limits annually to reflect shifts in the housing market. If a borrower needs financing above the FHA loan limit, they may need to explore alternative options such as a Jumbo Loan.
Q-What is 'Plaid' and third-party bank account verification and how does it work? A-Third-party bank account verification is the process of confirming a user’s bank account details—such as the account number, routing number, and account holder name—through a trusted external service provider, often an electronic payment processor. This verification can occur in real time or through a batch process, depending on the provider. It’s a critical step for anyone making or receiving electronic payments or direct deposits, helping to reduce fraud, avoid errors, and ensure the accuracy of transactions. Some services may also require additional information—such as a Social Security number or date of birth—to verify identity and prevent misuse. Examples of third-party verification providers include: Plaid Yodlee Dwolla These platforms offer APIs and tools that businesses and individuals use for secure payment processing, identity verification, and financial data access.
Q-What will my interest rate, points, fees, and deposits be? A-Real Estate Investor Loans with Competitive Rates At Prospera Private Capital, we offer non-owner-occupied private money loans for real estate investors with rates starting as low as 7.99% for short-term loans (6–24 months), with points due at closing (see Schedule 1 below). We're committed to offering the most competitive terms. If you have a written offer from another lender, bring it to us—we’ll meet or beat it whenever possible. Schedule 1: Service Fees & Origination Points* (*Points are paid on the HUD at closing. Service fees are due only after receiving a pre-approved offer acceptable to the client.) Residential Loans (1–4 units, including residential construction & land acquisition): Mini Loans ($30K–$100K): $275 Service Fee + 2.85 Points Standard Loans ($100K–FHA Cap): $275 Service Fee + 2.75 Points Jumbo Loans & FHA Non-Conforming Loans: FHA Cap–$500K: $275 Service Fee + 2.75 Points Above $500K: See Commercial Loans below Commercial Loans (5+ units, condos, mixed-use, storage, etc.): $100K–$500K: $275 Fee + 2.75 Points $500K–$1M: $475 Fee + 2.25 Points $1M–$3M: $875 Fee + 2.00 Points $3M–$5M: $1,675 Fee + 1.75 Points $5M–$10M: $3,275 Fee + 1.50 Points $10M+: $6,475 Fee + 1.00 Point Long-Term Private Money Loans We also offer 30-year fixed-rate loans starting at 7.499%, subject to underwriting. In select states (AL, GA, KS, ME, MO, MS, NE, WI, WY), a 5/1 ARM may be used instead. Requirements: Minimum credit score: 660 DSCR (Debt Service Coverage Ratio): 1.2 Loan amounts: $50K–$2M for individual properties Up to $10M for 2–10 properties Service fees and points are the same as outlined in Schedule 1. (Secondary lenders may have higher points and varied terms.) Additional Information Service Fee Coverage Includes: Credit check Background and public records check Merchant and wire fees Administrative costs This fee is only due after you receive a pre-approved loan offer you find acceptable, and before final underwriting. Please note: Third-party closing costs are not included. These may include attorney, title, insurance, appraisals, taxes, inspections, realtor fees, and more. First-Time Clients If you're new and haven’t submitted a payment or worked with VistaCreditRepair.com in the past 30 days, a $1 fully refundable security deposit may be required before we submit your loan scenario to a lender. To request a refund, contact us in writing via email or postal mail. You may also be asked to submit your last two bank statements to verify liquid assets. Rush Orders Need fast processing? Add a RUSH ORDER to your application for $225 (non-refundable). Your application will be prioritized and processed ahead of regular submissions. Travel Costs If in-person travel is required for any reason, fees include: By car: $0.65/mile (one way) + tolls + executive lodging, meals, and incidentals By air or rail: Fare (round trip) + car rental or town car + taxes + meals + lodging Collections & Dishonored Checks Collections: You are responsible for attorney fees, court costs, and outstanding balances (including interest) Returned check fee: $39 † The Federal Housing Administration (FHA) cap is set by the federal government and it limits the size of loans that can be purchased by the federal mortgage loan holding agencies such as Freddie-Mac and Fannie-Mae.* We reserve the right to change these programs, rates and fees at anytime with or without notice and for any reason.** The above ARM is an Adjustable Rate Mortgage that has a 5 year lock in interest rate at the beginning of the loan with the rate adjusting annually after the lock in rate expires. DSCR means Debt Service Coverage Ratio. DSCR is a metric used to compare your debt to income ratio.
Q-Are your interest rates and fees competitive? A-Yes — We're Highly Competitive! At Sandy Beach Capital, we believe in a free market—and in earning your business. If you have a written offer from another lender with better terms, bring it to us. We’ll match or beat it, while delivering faster funding and personalized service that sets us apart. We have millions ready to lend, and we don’t want rates or fees to be the reason you miss out on a great deal. Give us a try—you’ll see the difference.
Q-Can I get 100% financing with no money down and no closing costs? A-Is 100% Financing Available? Possibly—if you qualify. There are two common paths to 100% financing: Experienced Investors: You may qualify through our exclusive Platinum Program, designed for seasoned real estate investors. Equity Leverage: If you own another property free and clear, you may be able to use its equity as additional collateral alongside the new purchase. Keep in mind that, due to lender risk, Loan-to-Value (LTV) is typically limited to 50%–90% of the appraised value or After Repair Value (ARV). This varies based on factors such as your credit, experience, property type, whether it’s a cash-out or jumbo loan, and more. Contact us to see if you qualify for 100% financing.
Q-What is the easiest type of investment property to finance for Fix & Flip? A-Easiest Properties to Finance The simplest investment properties to secure financing for are residential (1–4 unit) properties that meet the following criteria: Loan amount is within FHA limits Property size is 2,800 sq ft or less Maximum of 5 bedrooms and 3 bathrooms Lot size is a half-acre or smaller Purchase price is at least 20% below the After Repair Value (ARV) These factors help reduce risk and streamline approval.
Q-What is the easiest type of investment property to finance for Fix & Flip? A-Easiest Properties to Finance The simplest investment properties to secure financing for are residential (1–4 unit) properties that meet the following criteria: Loan amount is within FHA limits Property size is 2,800 sq ft or less Maximum of 5 bedrooms and 3 bathrooms Lot size is a half-acre or smaller Purchase price is at least 20% below the After Repair Value (ARV) These factors help reduce risk and streamline approval.
Q-What makes Sandy Beach Capital different from all the others? A-1. We’re Not a Bank — And That’s a Good Thing As a contracted agent for a national private money wholesale lender and a private money brokerage, we’re free from the rigid rules and credit restrictions that banks often impose. That means faster, simpler, and potentially more affordable access to funding for you. Our capital comes from wealthy private firms looking to invest in real estate deals like yours. 2. Faster Funding While banks can take months, our average turnaround time for a completed application is just 3–4 weeks—helping you move quickly on your investment opportunities. 3. We’re Real Estate Investors Too We don’t just fund real estate deals—we understand them. Our team consists of experienced real estate investors, so we know your needs and challenges firsthand. That means smarter support and tailored solutions. 4. Personalized, Ongoing Service You’ll have a dedicated agent guiding you through the process, ensuring your documentation is complete and your funding goes smoothly. We’re with you from application to closing—and we’ll be ready when you’re ready to fund your next project.
Q-What are your business hours? A-Our business hours are as follows: Mon-Fri: 12pm-8pm EST (or 9am to 5pm PST) Sat-Sun & Holidays: Closed
Q-Do I need good credit to qualify? A-No credit check is required for our short-term loans on residential properties with four units or fewer, and there is no minimum credit score to qualify. Even with less-than-perfect credit, you may still be eligible. That said, a higher credit score may help you secure better terms, such as a lower interest rate and reduced points. Note: For long-term (30-year) loans, a minimum credit score of 660 is required.
Q-Do I need house flipping experience to qualify? A-No experience? No problem. You don’t need prior real estate rehab experience to get funding for your Fix and Flip project with us. Whether it’s your first deal or your tenth, we work closely with you throughout the process to help ensure your success. Our goal is to support your growth in the real estate investment world.
Q-Do you offer loans for properties other than beach front properties? A-Yes! We provide funding for inland real estate investment properties in rural, urban, suburban, and exurban areas—including small towns and villages. We also finance residential multi-family properties with up to four units. Your investment property doesn't need to be beachfront or located in Florida. We fund deals in multiple states across the U.S.
Q-What states do you offer real estate investment loans in? A-We offer real estate investment loans to business entities on properties located in the following states only: Alabama, Alaska*, Arkansas, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois*, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland*, Massachusetts, Michigan*, Mississippi, Missouri*, Montana, Nebraska, New Hampshire, New Mexico, Ohio*, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and the District of Columbia. NOTE: At this time we do not offer loans on properties located in: AZ, CA, ID, MN, NC, ND, NJ, NV, NY, OR, SD, UT, VT, or in U.S. territories, or foreign countries; nor do we currently offer loans to private individuals, or on owner occupied properties, or on mobile homes, vehicles, vessels, or aircraft. We can only offer loans to borrower LLC's, Corporations, Partnerships, Trusts, IRA's and other business entities for the purchase of non-owner occupied (non-homesteaded) residential, multi-family, or commercial real estate investment properties*. * Commercial property loans are currently not available in IL & MI; Construction loans are not available in: AK; and only brokered loans are available in MO; and only brokered loans with a maximum of 50% LTV (Loan To Value) are available in Cook County, IL (Chicago); Baltimore County, MD (Baltimore); and Wayne County, MI (Detroit); and certain brokered loans in Cuyahoga County, OH (Cleveland) may be limited to 50% LTV.
Q-Do you offer real estate investor refinance loans with cash out? A-YES! We can offer refinance loans for 65% (up to 75%) of the After Repair Value (ARV), and Cash Out Refinance loans for 50% (up to 70%) of the Loan To Value (LTV).
Q-What is Cash Out? A-Typically, when you refinance a mortgage, the new loan is used entirely to pay off the existing one. With a Cash-Out Refinance, however, you receive a portion of the loan directly in cash—which you can use for repairs, investments, or any other expenses you choose.
Q-Do you offer loans to pay for purchase and repair of a property? A-Yes! We offer Fix & Flip loans for up to 90% of the purchase price and 100% of the rehab cost. You can apply for your loan online today! It's fast and easy. Apply Online.
Q-Do you offer loans to pay for purchase and repair of a property? A-Yes! We offer Fix & Flip loans for up to 90% of the purchase price and 100% of the rehab cost. You can apply for your loan online today! It's fast and easy. Apply Online.
Q-What is the maximum amount I can borrow on a property? A-In most cases, you can borrow up to: 65% LTV or ARV on a purchase (with or without repairs) Up to 75%–100% in certain cases* Up to 70% LTV on a Cash-Out Refinance We fund loans up to the FHA Cap and also offer Jumbo Loans for higher-value properties. (See the Jumbo Loans FAQ below for details.) Ready to get started? Apply online today — it’s fast and easy. *Up to 50% of the LTV or ARV in the following high foreclosure reporting counties: Baltimore, MD; Cook, IL; Cuyahoga, OH; Wayne, MI.
Q-Do you offer homeowner mortgage or refinance loans? A-Sorry, we do not. We specialize exclusively in financing non-owner-occupied investment and commercial properties. We do not offer loans for owner-occupied or homesteaded homes.
Q-What does non-owner occupied mean? A-Non-owner occupied refers to a property where the owner does not live on-site. Instead, the property is either vacant or rented out to tenants. In short, it’s used exclusively for investment purposes—not as a primary residence.
Q-Do you offer loans on mobile homes? A-We only provide loans for properties where the mobile home is permanently affixed to the land and the borrower owns the land. Contact us to discuss your specific property and loan options in more detail.
Q-Do you offer loans on vehicles, vessels, or aircraft? A-Sorry, no we don't. We only offer loans on real estate investment properties.
Q-Do you finance condos, apartment buildings, townhouses, mixed‑use properties, or self‑storage units? A-Yes! we do. Contact us to discuss it in more detail.
Q-What is the difference between Residential and Commercial property? A-Residential property typically includes: Single-family homes Duplexes (2 units) Triplexes (3 units) Fourplexes (4 units) All located on a single lot, parcel, or property. Commercial property generally refers to: 5 or more residential units (e.g., apartment buildings, condo or townhouse complexes) Planned Unit Developments (PUDs) Mixed-use properties (residential + retail) Self-storage facilities Other non-residential or income-generating properties
Q-Do you offer loans for Ground Up Construction? A-YES! we do, including land acquisition for residential construction. Contact us to discuss it in more detail.
Q-Do you offer loans for AirBnB and other short term rental properties? A-YES! we do. Contact us to discuss it in more detail. Apply Online.
Q-Do you offer loans on duplexes, triplexes, and quadruplexes? A-YES! We do. You can apply online today! It's fast and easy. Apply Online.
Q-Do you offer hard money loans and interest only loans? A-YES! We do. You can apply online today! It's fast and easy. Apply Online.
Q-Do you offer jumbo loans? A-Yes, we do. A jumbo loan is a residential mortgage that typically exceeds $500,000 or the FHA loan limit for qualified mortgages. These loans are ideal for higher-value properties that fall outside standard lending caps. If you’re a qualified borrower, we can help. Contact us to discuss your options or apply online today.
Q-Do you offer gap funding or gator loans? A-Sorry, we do not offer gap funding or gator loans. Gap funding refers to short-term financing used to bridge the time between securing a deal and receiving the main funding—commonly used in real estate or startups. Gator loans are fast, creative funding solutions often used by real estate wholesalers or investors to cover earnest money deposits or quick purchases in time-sensitive deals like double closings. These are typically repaid within days and may include a fee or profit share. While we specialize in private money lending, we do not currently provide these types of short-term bridge loans.
Q-Do you offer loans on raw land and construction? A-Yes, we do, if you are ready to build on the land. Apply Online. We do not lend on land that is not ready for immediate residential construction, however.
Q-How do I prove to a seller that I am pre-qualified for financing by a lender? A-If a seller is looking for proof from a lender that you are pre-qualified for financing, we can provide this for you for $197.* Follow this link to order your Pre-Qualification for Financing Letter from one of our vetted and approved lenders. * (The fee shown herein may be subject to change at any time with or without notice.)
Q-Do you offer a special program for highly experienced Real Estate investors? A-Yes! Our exclusive Platinum Program is designed for experienced real estate investors with a successful track record in Fix & Flips who are seeking better rates and faster funding. To qualify, you must have: Completed 8 paid-off deals in the past 24 months (or 4 deals completed through our primary lender, or a mix of both) Proof via HUD statements or lease agreements Three months of verified bank statements via Plaid (Your deposits must be at least twice your debits) Platinum Program Benefits: Flat 9.75% interest rate Up to 100% financing of the Purchase Price, Rehab Costs, and Closing Costs (not to exceed 70% of total value) Lower lender fees: 1 point standard 2 points if Rehab or Cash-Out is included Max 75% LTV with a general appraisal Faster processing and reduced paperwork for future deals Enrollment Fee: $997 (non-refundable) Annual Renewal Fee: $500 Contact us to learn more or Apply Online today.
Q-What are your terms and conditions and privacy policy? A-Your privacy is very important to us. Accordingly, we have developed this Policy in order for you to understand how we collect, use, communicate and disclose and make use of personal information. Before or at the time of collecting personal information, we will identify the purposes for which information is being collected. We will collect and use your personal information solely with the objective of fulfilling those purposes specified by us and for other compatible purposes, unless we obtain the consent of the individual concerned or as required by law. We will only retain personal information as long as necessary for the fulfillment of those purposes. We will collect personal information by lawful and fair means and, where appropriate, with the knowledge or consent of the individual concerned. Personal data should be relevant to the purposes for which it is to be used, and, to the extent necessary for those purposes, should be accurate, complete, and up-to-date. We will protect personal information by reasonable security safeguards against loss or theft, as well as unauthorized access, disclosure, copying, use or modification. We will make readily available to customers information about our policies and practices relating to the management of personal information. We are committed to conducting our business in accordance with these principles in order to ensure that the confidentiality of personal information is protected and maintained. Please read the following policy to understand how your personal information will be treated as you use our services. This policy is provided to you as required by the federal Gramm-Leach-Bliley Act (15 U.S.C. §§ 6801 et seq.) and the appropriate regulations and guidelines thereunder. The Security We Use to Protect Your Information We use SSL (Secure Sockets Layer) technology to protect all data transmitted between browsers and our servers. In order to use the site, users are required to be running an SSL-capable browser. What Information We Collect From You We collect various types of personal information about you during the normal course of offering and providing real estate and/or mortgage services. This includes but is not limited to: Information you provide in order to purchase a property and/or obtain a mortgage loan including your name, phone number, address, social security number, email address, employer’s name and address, income, assets, liabilities, and answers to questions of both personal and financial matters; communications from you regarding your loan(s) such as a change of employment; information obtained from third parties such as consumer reporting agencies or credit bureaus, employers, depository institutions and others, that we use to evaluate a loan application; information that we may gather in compliance with certain laws and government regulations. Sharing of the Information Gathered on This Site We share personal information about you, as required or permitted by law, with third parties, such as service providers who assist us in the day to day operations of our company in the administration, processing, servicing and sale of your loan. These third parties include among others, title companies, appraisers, insurance companies, underwriting services, processing services, printing companies, software providers, marketing services and purchasers of loans. Our policy is to require third party service providers to enter into confidentiality agreements with us, prohibiting them from using any personal information they obtain for any other purpose other than those for which they were retained or as required by law. We may also disclose information about you, when necessary or required, in legal and arbitration proceedings and to government agencies. What Cookies Are and How They Are Used A cookie is a small amount of data that is sent to your browser from a web server and stored on your computer’s hard drive. Our site has programs that use cookies to maintain session information to remember who you are as you go from page to page. To protect your privacy we do not use cookies to store or transmit any personal information about you on the Internet. External Links This site contains external links (links to other sites). We are not responsible for the privacy practices or the content of such web sites. If you have any questions about this privacy statement, the practices of this site, or your dealings with this web site, please contact us. Updating or Deleting Your Information, Including Demographic and Profile Data You may update or delete your information at any time prior to completing an online data form. Once your online form is completed and submitted, you will not be able to change any of the information online. You will need to contact us via email, phone or postal mail to request that we update or delete your information. Demographic and Profile Data We may share certain aggregated demographic and profile data with government agencies. Aggregate data excludes information that would enable any individual to be identified. We also collect certain data (including your IP address) about your visit to our web site in our log files to enable us to analyze site traffic and gather broad demographic data. The data in our log files are not linked to personally identifiable information. Terms of Use 1. Terms By accessing this web site, you are agreeing to be bound by these web site Terms and Conditions of Use, all applicable laws and regulations, and agree that you are responsible for compliance with any applicable local laws. If you do not agree with any of these terms, you are prohibited from using or accessing this site. The materials contained in this web site are protected by applicable copyright and trade mark law. 2. Use License Permission is granted to temporarily download one copy of the materials (information or software) on Sandy Beach Capital LLC’s web site for personal, non-commercial transitory viewing only. This is the grant of a license, not a transfer of title, and under this license you may not: modify or copy the materials; use the materials for any commercial purpose, or for any public display (commercial or non-commercial); attempt to decompile or reverse engineer any software contained on Sandy Beach Capital LLC’s web site; remove any copyright or other proprietary notations from the materials; or transfer the materials to another person or “mirror” the materials on any other server. This license shall automatically terminate if you violate any of these restrictions and may be terminated by Sandy Beach Capital LLC at any time. Upon terminating your viewing of these materials or upon the termination of this license, you must destroy any downloaded materials in your possession whether in electronic or printed format. 3. Disclaimer The materials on Sandy Beach Capital LLC’s web site are provided “as is”. We make no warranties, expressed or implied, and hereby disclaims and negates all other warranties, including without limitation, implied warranties or conditions of merchantability, fitness for a particular purpose, or non-infringement of intellectual property or other violation of rights. Further, we do not warrant or make any representations concerning the accuracy, likely results, or reliability of the use of the materials on its Internet web site or otherwise relating to such materials or on any sites linked to this site. 4. Limitations In no event shall Sandy Beach Capital LLC or its suppliers be liable for any damages (including, without limitation, damages for loss of data or profit, or due to business interruption,) arising out of the use or inability to use the materials on our Internet web site, even if we or our authorized representative has been notified orally or in writing of the possibility of such damage. Because some jurisdictions do not allow limitations on implied warranties, or limitations of liability for consequential or incidental damages, these limitations may not apply to you. 5. Revisions and Errata The materials appearing on Sandy Beach Capital LLC’s web site could include technical, typographical, or photographic errors. We do not warrant that any of the materials on our web site is accurate, complete, or current. We may make changes to the materials contained on its web site at any time without notice. We do not, however, make any commitment to update the materials. 6. Links Sandy Beach Capital LLC has not reviewed all of the sites linked to its Internet web site and is not responsible for the contents of any such linked site. The inclusion of any link does not imply endorsement by Sandy Beach Capital LLC of the site. Use of any such linked web site is at the user’s own risk. 7. Site Terms of Use Modifications Sandy Beach Capital LLC may revise these terms of use for its web site at any time without notice. By using this web site you are agreeing to be bound by the then current version of these Terms and Conditions of Use. 8. Governing Law Any claim relating to Sandy Beach Capital LLC’s web site shall be governed by the laws of the State of Florida without regard to its conflict of law provisions. General Terms and Conditions applicable to Use of a Web Site. Contacting Us If you have any questions about this privacy policy, terms and conditions, please write to us by mail at the address below: Sandy Beach Capital LLC 1317 Edgewater Drive, Suite 116 Orlando, FL 32804
Glossary: 1031 Exchange: The process by which a taxpayer may defer recognition of capital gains and related federal income tax liability on the sale and purchase of investment properties within a limited timeframe. Appraisal: See Evaluation. Arrears: The interest paid after it’s accrued. For example, a payment on October 1 pays for interest owed for the entire month of September. Assessor's Parcel Number (APN): The number used by the tax assessor to identify a parcel of land. Assignee: The person to whom rights to a property, title, or other interest are transferred. Auction: A place where properties are sold to the highest bidder. Also known as a foreclosure (county) auction or a sheriff’s sale. Bankruptcy: A proceeding authorized by federal law that provides debtors with various kinds of relief from their debts. Types include; Chapter 7, 11, and 13. Balloon Loan: A loan that calls for a large sum to be paid at the end of the loan term. Borrower: The individual or entity borrowing funds to complete a real estate deal. Bridge Loan: Short term financing that bridges the gap until other financing is obtained, typically for a term of less than one year. Also known as a swing loan or bridge financing. Broker Price Opinion (BPO): See Evaluation. Budget: The detailed financial plan for real estate purchase, flip, construction, and sale. Cash Flow: An individual’s or entity’s income minus expenses over a particular time period. Typically, monthly. Closing: The period that marks that a new loan transaction has funded. Closing Costs: The fees paid at closing for loan origination and processing, including attorneys’ fees, fees for recording a mortgage/deed of trust, fees for title search, taxes, and insurance. Collateral: Something pledged as security for the repayment of a loan. Types include: Real Estate Collateral – The real property used to secure repayment of a real estate loan. Cash Collateral – A deposit held by a lender in lieu of a down payment. Collection: The status given to a loan when the payment on the loan is delinquent and efforts are made to collect the amount due. Collection is typically handled by the loan servicer. Combined Loan to Value (CLTV): The sum of all liens on the property divided by the value of the property. Lenders often use the term LTV synonymously with CLTV. CLTV is typically used when there is more than one lien and LTV is used when there is only one lien. Credit Report: The information collected by credit bureaus about an individual’s credit history, including a list of credit accounts, their balances, and monthly payments, along with collection accounts and public record information such as liens and bankruptcies. Credit Score: A number based on information in the credit report that is used by most lenders to decide whether to extend credit and at what cost. The most common score used is the FICO score. Creditor: A person or business from whom one borrows or to whom money is owed. Debt-To-Income Ratio: The amount of money owed each month as a percent of gross income. For example, $2,500 of debt payments / $5,000 of gross income = 50% DTI (debt-to-income) ratio. Default: The status given to a loan when a borrower fails to comply with any of the agreed-upon terms of the loan, or to work out terms agreed upon during the collection process, including timely repayment, maturity, or other violations of the deed of trust. Loans in default can be subject to higher rates, additional fees, and foreclosure. Default Interest Rate: An increased interest rate imposed if there is a breach of the loan terms. Draws: The funds advanced by a lender to the borrower throughout the construction process for the completion of specific line items, which increase the outstanding balance. Drive by Appraisal: See Evaluation. Due Date: The date when a loan payment is due each month. Equity: The difference between the fair market value (appraised value) of real property and any outstanding loans, liens, and encumbrances. Most lenders require equity to ensure the borrower has a financially vested interest in the property. Escrow Company: A company that oversees the execution of real estate transactions, including closing documents, disbursement of funds, and the recording of documents at the county offices. Also known as a settlement services company. Estoppel Certificate: A form used in commercial real estate to verify rents, leases, mortgage balances, monthly payments, etc., on a property. Evaluation: The method in which the value of a real estate property is determined. Various types of evaluations include: Appraisal – A written opinion and analysis of the estimated market value of real estate from a licensed professional for both the interior and exterior of the property. Broker Price Opinion (BPO) – A property inspection by a licensed real estate broker which results in a written evaluation of the property and the estimated sale price. Drive by Appraisal – A written opinion and analysis of the estimated market value of real estate from a licensed professional based solely on the exterior of the property. Fair Market Value – The value of a property based on comparable sales (“comps”) of similar properties within the last six months. Collateral DNA Property Report – A full property valuation without the expense of an appraisal. Provides detailed data about the property you are considering. Using sales history, comps, recent sales, and, where available, current listings, to information about the market, the schools, the impact of foreclosures, and the inventory, to quickly determine the value of a property. Extension Fee: A fee paid by a borrower to extend an existing loan for an additional term, upon lender approval. Also known as a renewal fee. Fair Market Value: See Evaluation. FEMA Flood Zone: The geographic areas that FEMA has designated as flood zones according to their varying levels of flood risk. These zones are depicted on a community's flood insurance rate map (FIRM) or flood hazard boundary map. Each zone reflects the severity or type of flooding in that area. FICO Score: A credit score developed by Fair Isaac & Co. that assesses the likelihood that credit users will pay their bills. See Credit Score. Forced Placed Insurance: The insurance placed on a property by the lender (lien holder) in the event a borrower allows their own coverage to lapse. The premium is advanced by the lender and billed to the borrower to be paid within 30 days. Foreclosure: The legal process by which an owner’s right to real property is terminated, typically due to a default. Types of foreclosure include: Judicial Foreclosure – A type of foreclosure that allows the lender to retain all profits from a foreclosure sale. Nonjudicial Foreclosure – A type of foreclosure that allows the lender to retain only enough funds to satisfy the debt, including interest fees and costs. Foreclosure Fees: The costs (legal and other) incurred by a lender to foreclose on a property. These costs are the responsibility of the borrower. Funding: The process of funds being disbursed to the borrower during the closing of a new loan transaction. Grace Period: The period between the due date (i.e. 1st of the month) and the date late charges will assess. Hard Money Lender: A lender that makes private money loans that traditional lenders typically won’t fund. Interest: The money paid regularly at a particular interest rate for the use of money lent. Common types of interest include: Interim (or Prepaid) Interest – The interest paid by the borrower at loan closing from the funding date to the end of that month. Periodic Interest – The money owed each period as defined by the note, usually monthly. Interest Rate: The percentage rate that lenders charge for the use of their money. Also known as note rate. Interest Reserve: The funds paid by the borrower and held by the lender for future interest payments. Typically, these occur on construction loans. Investment Property: A non-owner occupied property. Can be commercial or residential. Jumbo Loan: A jumbo loan, also known as a jumbo mortgage, is a type of financing that exceeds the limits set by the Federal Housing Finance Agency (FHFA). Unlike conventional mortgages, a jumbo loan is not eligible to be purchased, guaranteed, or securitized by Fannie Mae or Freddie Mac. Jumbo mortgages are designed to finance luxury properties and homes in highly competitive local real estate markets and have unique underwriting requirements and tax implications. Late Fee: A fee paid by a borrower if a loan payment is not made before the end of the grace period. Lien: A legal claim on real property, generally for the payment of a debt or obligation. Lien Position: The position that determines claim priority on a property. The two different types include: First Position – This position is the primary mortgagor on the property. Junior Lien – A lien against a property not in first position or priority. For example, a second mortgage, or third or fourth position. Line item: A specific cost in a construction budget. Multiple line items add up to the total budget. Liquidity: The ability to convert assets to cash without significant time delay. Loan-to-Value Ratio (LTV): The amount of outstanding debt on real property divided by the fair market value of the property. Maturity Fee: The fee assessed to a loan not paid off by the due date. Maturity Date: The date when the full loan balance, accrued interest, and fees are due to be paid off as defined on a note or loan modification agreement. Mortgage: The document that pledges collateral property(ies) as security. Also known as a deed of trust or trust deed. Note: An abbreviation for promissory note. It discloses the interest rate and terms of the loan and is an obligation of debt. Payoff: The act of paying off a loan by paying the outstanding principal amount and any additional interest and/or fees due to completely satisfy the loan obligation. Payoff Statement: A statement that provides information on the amount of money required to pay off a loan through a specific date. Per Diem: The daily rate of interest as defined in the note. Personal Guarantee: A guarantee by an individual to a lender for the entire outstanding loan amount plus legal fees, accrued interest, and costs associated with collecting the loan. This type of guarantee entitles the lender to access the individual’s personal assets to repay the loan. Points: Finance charges paid at closing. Each point equals 1% of the loan amount. For example, one point on a $100,000 loan is equivalent to $1,000. Some lenders charge a flat fee rather than points. Also known as origination fees. Preliminary Title Policy: A search performed by a title company to determine property ownership and the liens filed on the property. Includes an offer to insure title on a property. Also known as a binder or title commitment. Prepayment Penalty: The penalty a lender may impose if a loan is paid off before it is due or before a specified time period, as defined in the loan’s note. Principal Balance: The outstanding balance of the principal on a loan, which does not include interest or other charges. Private Money Lender (PML): See Hard Money Lender. Refinance: The process of obtaining a new loan on an already-owned property. Scope: The list of work to be performed under a contract or subcontract in the completion of a renovation project. Typically broken out into specific line items. Security Interest: An ownership interest that a lender takes in the borrower's property to ensure repayment of the debt. Typically through a mortgage or deed of trust. Servicer: A company that handles all payment-related transactions with borrowers, including accepting monthly payments, issuing monthly statements, providing year-end tax statements, and paying property taxes and insurance when due. Sheriff’s Certificate: The certificate of sale after a judicial foreclosure. Subject-To: Is when the buyer of a property takes over the seller's existing mortgage on a property without officially assuming it. The buyer makes the payments on the seller's loan, but the loan stays in the seller's name. It's a way to purchase a property without needing to qualify for a new loan. This is especially useful when the existing mortgage has a low interest rate and the selling is motivated to sell, such as when the property is in pre-forclosure or the owner needs to move quickly. Tax Identification Number (TIN): A number issued by the IRS identifying a taxpayer. Usually a Social Security Number (SSN) for an individual or an Employer Identification Number (EIN) for a business. Title: The evidence of right to ownership of real property. Title Company: A company that searches county and public records for liens and encumbrances against a subject property and the borrower. Title Insurance: An indemnity policy issued by a title company that insures an owner and/or lender against loss due to title defects, liens, or encumbrances. Also known as a title policy. UCC Filing: Also known as uniform commercial code filing. A county or state filing to secure real property and/or fixtures (assets or inventory related to the property). Typically related to commercial property. Underwriting: The process lenders use to determine the risks related to the property and the involved borrower for any given loan. Hard Money Lending Acronyms: APN – Assessor's Parcel Number ARV – After Repair Value DNA/CDNA – Collateral Data aNd Analytics CLTV – Combined Loan to Value FICO – Fair Isaac Corporation IO – Interest Only LLC – Limited Liability Company LTC – Loan to Cost LTE – Long Term Extension LTV – Loan to Value PML – Private Money Lender POF – Proof of Funds SREO – Schedule of Real Estate OwnedTIN – Tax Identification Number UCC Filing – Uniform Commercial Code Filing UW – Underwriter