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   VLD Realty Frequently Asked Questions
 

At VLD Realty, we strongly encourage the ongoing education of our clients. Below you will find
definitions of real estate terms that may help you gain a better understanding of our business.
If you ever have any questions, please feel free to call us at (888) 853-4968 and any one of
our associates would be glad to speak with you.

  
  Letter Index:  A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z  
     
   A:   What is the basic concept of Hard Money Lending and Investing?
     
1. Hard money loans are funded by individuals, not banks. Since the paperwork is less cumbersome, decisions can be made more quickly.
2. A bank loan is usually 80% of your purchase price (meaning you need a 20% down payment plus closing costs in cash), whereas a hard money loan is 50-70% LTV.  This means (if you buy right) your entire acquisition can be covered by the loan as well as the rehab costs. Often the type of property is a factor: banks don't like lending on raw land and lots, but private money lenders are more inclined to do so. Cash leverage is another factor.
     
   B:   What areas do you loan in?
Our services are currently available in Sacramento and Calaveras County of California.  We are constantly investigating new markets and are open to any areas in which our investors are interested and active.
 
   C:   Why will borrowers pay such high rates?
The timing of capital needs of the borrower can be driven by their financial obligations (tax surprises, estate issues, balloon payments to name a few). Business opportunities sometimes arise when conventional lenders simply cannot react in as timely a manner as VLD Trust. So we are able to provide a bridge for businesses to get to their business objectives.
     
   D:   How long does it take to close the loan once I have been approved?
Under special circumstances a loan can be closed within one or two business days after you have submitted supporting documents, but on average, 7-14 business days. We do require an informal meeting with each first-time borrower prior to closing your loan.
     
   E:   Do you have a minimum credit score?
No.  As hard money lenders, our primary criteria  is the property being secured with the loan.  Upon submission of your application, your credit will be examined. This helps us determine your exit strategies.
     
   F:   Do you require inspections prior to releasing funds from escrow?
Absolutely.  For your protection, an inspection is ordered every time a draw request is submitted.  The inspector will verify that the designated repairs have been completed before payments are disbursed.
   G:   What is a Foreclosure?
 This is the legal process a lender uses to gain control of real estate used as collateral for a mortgage. In California this process takes at least 3 months and 21 days.
     
   H:   Who regulates VLD Trust?
We are regulated by the California Department of Real Estates. They require audited financials and periodically examine our files.
     
   I:   Do you loan on New Construction?
Yes, it’s a subject to client experience. Generally VLD Trust funds new construction in established neighborhoods. Plans and specs, along with contractor/sub-contractor information, must be submitted to us for preliminary approval.
     
   J:   Does VLD Trust collect a fee prior to funding a loan?
There are no fees or charges until the loan funds.
   K:   Do you require a down payment?
A down payment is not usually required, and is dependent on each individual deal.
   L:   Where does my investment go? To VLD Trust or is there a Trust Account?
We have trust accounts set up for investors’ principal capital and also for the interest payments made to our investors. VLD Trust recognized that there should never be (and never will be) any chance of investors’ principal or interest payments being co-mingled.
     
   M:   Are there any other closing cost?
None, other than normal title and escrow closing costs.
   N:   As a mortgage broker bringing you this transaction, how do I get paid?
It is simple. You bring us a borrower. We price the loan to you. (Think of yourself as a wholesale buyer.) You price the loan to your client, adding your fees as appropriate. You stay involved in the loan (or not) as you choose, and prior to closing, you submit a fee demand to escrow and receive a check directly from the title company.
     
   O:   What information do we need from the Borrower to begin the loan process?
Although every Borrower’s situation will vary, here is a checklist of items needed to get the process started. Not all items on this list necessarily apply to your transaction. If you have any questions about what you will need to provide, or need help gathering any of these documents, please do not hesitate to contact us.
     
   P:   What are the interest rates?
Private money rates generally range from 12 to 15%. The rate is determined by looking at a combination of factors: (a) LTV ratio, (b) strength of borrower, (c) condition/desirability of property, (d) actual cash-in or real equity contributed by borrower. Typically our rates fall in the 13-14% range.