Sandy Beach Capital is a Private Money Mortgage Lender 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, Subject-To, and New Construction Property deals using mortgage loans from accredited high net worth private individuals and companies rather than from traditional banking institutions.  The private money lending sector is an alternative source of financing for real estate investment loans.

Yes, Sandy Beach Capital is a direct lender for real estate investor loans, such as Fix & Flip, Buy & Hold, Rehab, New Construction, and Refinance (including Cash Out).  

For other types of loans, we maintain our own proprietary list of vetted nation-wide private lenders that we work with.

Private Money Mortgage Loans are alternative financing options that allow individuals to borrow money from private investors or companies. The process of getting a Private Money Mortgage Loan typically involves the following steps:

1. Finding a Private Money Lender: Your broker will need to find a private lender who is willing to lend you the money you need. Private lenders are often individuals or small companies that specialize in providing alternative financing options.

2. Submitting an Application: Once a private lender has been found for you, you will need to submit an application for the loan. The application will typically require you to provide information about your financial situation, including your income, assets, and credit history.

3. Providing Documentation: In order to assess your eligibility for the loan, the private lender may require you to provide additional documentation such as bank statements, tax returns, and proof of income.  You should be able to show that you have an average of two times more in deposits as debits in your bank account over the last three months.  The process may include having a third party (such as Plaid) verify* your bank account. 
   (* Note that some banks, such as Chase, may not allow third party verification of some types of accounts (i.e. escrow accounts) and this may disqualify you for a loan from some lenders.)

4. Getting Approved: If the private lender approves your application, they will provide you with a loan offer outlining the terms and conditions of the loan. This will include the interest rate, repayment schedule, and any fees or charges associated with the loan.
   (* Note that if you have not provided all the required documentation to the broker/underwriter within thirty days of submitting your loan application, your application and loan offer (including your offered interest rate), may expire.)

5. Closing the Loan: If you accept the loan offer, you will need to sign a loan agreement and complete the closing process. This will involve paying any closing costs and fees associated with the loan, and transferring the funds to the appropriate parties.

Pre-approval and Final Approval are two important stages in the Private Money Mortgage Loan process, and they serve different purposes.

• Pre-Approval: Pre-approval is the initial stage of the loan process, where the lender evaluates the borrower's financial situation and creditworthiness to determine if they are eligible for a loan. During pre-approval, the borrower typically provides information such as their credit score, income, assets, and the value of the property being used as collateral. Based on this information, the lender will issue a pre-approval letter that outlines the loan amount the borrower is eligible for, the terms of the loan, and any conditions that must be met before final approval. Pre-approval is not a guarantee of final approval, but it can give the borrower an idea of how much they can afford to borrow and what the terms of the loan may be.

• Final Approval: Final approval is the stage of the loan process where the lender has reviewed all of the borrower's financial and property documentation, and has determined that they meet all the underwriting guidelines and conditions for the loan. During final approval, the lender will issue a loan commitment letter that outlines the final terms and conditions of the loan, including the interest rate, repayment schedule, and any fees or charges associated with the loan. Final approval is the last step before the loan is funded, and it is a binding commitment to lend the money to the borrower.

Private Money Mortgage Loan underwriting is the process by which a lender evaluates a borrower's financial situation and determines whether or not to approve their loan application. The underwriting process for Private Money Mortgage Loans may differ from traditional mortgages, and typically involves the following steps:

1. Initial Screening: The lender will conduct an initial screening of the borrower's application and financial documents to determine if they meet the basic qualifications for the loan. This may include factors such as credit score, income, assets, and the value of the property being used as collateral.

2. Property Valuation: In many cases, the lender will conduct an independent appraisal of the property to determine its current value. This is important because the property will be used as collateral for the loan, and the lender will want to ensure that it is worth enough to cover the loan amount in the event of default.

3. Risk Assessment: The lender will assess the overall risk of the loan based on the borrower's financial situation and the property being used as collateral. This may include evaluating the borrower's credit history, income stability, and other factors that may impact their ability to repay the loan.

4. Loan Terms: Based on the risk assessment, the lender will determine the terms of the loan, including the interest rate, repayment schedule, and any fees or charges associated with the loan.

5. Loan Approval: If the lender determines that the borrower meets the qualifications for the loan and the risk is acceptable, the loan will be approved. The lender will provide the borrower with a loan commitment letter outlining the terms and conditions of the loan.

The United States' FHA (Federal Housing Administration) cap typically refers to the maximum loan amount that can be insured by the FHA for a particular geographic area. This cap, officially known as the FHA loan limit, varies depending on factors such as the location and property type.

The FHA sets different loan limits for different areas based on the median home prices in those areas, these limits are generally set at the county level, so some counties in a state may have a different limit than another county in the state. Higher-cost areas generally have higher FHA loan limits, while lower-cost areas have lower limits. These limits are adjusted annually to reflect changes in home prices.

Exceeding these loan limits may require the borrower to seek alternative financing options such as a Jumbo Loan.

National Loan Funding is our in-house lending division that handles the processing, underwriting, funding, and loan servicing for our loan clients.

Third Party bank account verification is a process of verifying a user's bank account information through a third-party service provider, usually an electronic payment processor. The third-party provider checks the user's bank account details, such as the account number and routing number, to ensure that they are accurate and valid. This verification process can be done in real-time or through a batch process, depending on the service provider. 

Third party bank account verification is important for businesses and individuals who want to make electronic payments or receive direct deposits, as it helps to prevent fraud, errors, and other issues that can arise when incorrect or fraudulent account information is used. The information needed for third party bank account verification typically includes the user's bank account number, routing number, and name on the account, and some providers may also require additional information, such as the user's social security number or date of birth, for verification purposes. 

Examples of third party bank account verification providers include Plaid, Yodlee, and Dwolla. These providers offer web services and other tools that businesses and individuals can use to verify bank account information for various purposes, such as making payments or verifying identity.

We offer non-owner occupied private money real estate investor loans as low as 7.99% interest for short term loans (6-24 months) and points due on closing. (see Schedule 1 below)* However, we are very competitive, and we will meet or beat any other lender's rate with proof of a written offer for your deal.  So if you already have a written offer from another lender bring it to us.

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Schedule 1: Brokerage Fees and Origination Points:*

(Please note that Origination Points are payable on the HUD at the loan closing and the Brokerage Fee is due only after the Client has been pre-approved by the lender for a loan offer that is acceptable to the Client.)

RESIDENTIAL LOANS (Single Family Home or 1-4 units/apartments.):

    Mini Loans: $30,000 up to 100,000 = $275 Brokerage Fee & 2.85 Points

    Standard: $100,000 up to FHA Cap = $275 Brokerage Fee & 2.75 Points

    (Including residential construction and land acquisition loans.)

 Jumbo Loans & FHA Non-Conforming Loans: 

    FHA Cap up to $500,000 = $275 Brokerage Fee & 2.75 Points

    Above $500,000 = Same as Commercial Loans below

Commercial Loans (5+ units, apartments, condos, mixed use, storage, etc.):

    Loans $100,000 up to $500,000 = $275 Brokerage Fee & 2.75 Points

    Above $500,000 up to $1 million = $475 Brokerage Fee & 2.25 Points.

    Above $1 million up to $3 million = $875 Brokerage Fee & 2.00 Points

    Above $3 million up to $5 million = $1675 Brokerage Fee & 1.75 Points

   Above $5 million up to $10 million = $3275 Brokerage Fee & 1.50 Points

   Above $10 million = $6475 Brokerage Fee & 1.00 Point

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We also offer long term private money real estate investor loans as low as 7.499% interest and up, depending on the above mentioned factors as determined by the underwriters.*  This product is a 30 year fixed rate loan (or 5/1 ARM** in the following states: AL, GA, KS, ME, MO, MS, NE, WI, WY.  Prepayment penalty in effect. )  Unlike our short term loan, this long term loan does require the borrower to have a minimum credit score of 660 or higher and a DSCR** of 1.2 .*  Our Primary lender long term loan amount offered is between $50,000 and $2 million on single properties (2-10 properties are up to $10 million).  Our Brokerage Fee and Origination Points on this loan are the same as in Schedule 1 above. (Our Secondary lender Origination Points to Broker may be higher and other terms, rates, and conditions may vary depending on the lender.)

Our Brokerage Fee covers the cost of a credit check, a background check, a public records check, merchant and wire fees, and/or administrative costs, etc.  The Brokerage Fee is due after the client has received an acceptable pre-approved loan offer from one of our lenders and before submission of your final loan application to the underwriters.

Note that the above fees do not include any third-party closing costs that you may have to bear as part of the transaction such as, but not limited to, attorney fees and title and insurance fees, impounded taxes, interest, appraisals, realtor fees, inspection fees, etc.

If you are a new first time client who has not already submitted either a Rush Order or other payment to us, or made a payment to VistaCreditRepair.com within the last thirty days, a one dollar ($1) fully refundable security deposit may be required before submission of your loan scenario to a lender.  Refund requests for this deposit must be in writing and may be made by contacting us via our company email or business mailing address. We may also require you to submit your last two bank account statements to us for verification of your liquid assets.

RUSH ORDERS: If you are in a hurry, you may opt for a RUSH ORDER to be included with your loan application, the fee for choosing this option is $225 and is in addition to the brokerage fee and is a non-refundable fee.*  RUSH ORDERS are treated as a priority and processed before other regular loan applications and special effort is made to speed up our processing time for your application by our staff.

Travel costs: In the unlikely event that it becomes necessary for us to travel to your (or your property's) location(s) for any reason, the following fees will apply: If by car: 65 cents per mile one way, plus tolls, plus lodging with executive accommodation, tax, meals, and incidentals; plus, if air travel is required: airfare (including return fare), and car rental or town car fare plus tax, if by air; plus, if rail travel is required: rail fare plus tax and meals (including return fare).*

Collections costs: If collection becomes necessary, the actual cost of collections, attorney's fees, and court costs, in addition to any outstanding amounts still owing, including interest.  Dishonored 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.

Yes!  We are very competitive.  We believe in the free market, so if you bring us a written offer for your deal from any other lender that is less than our offer, we can meet or beat that offer for you and provide you with superior personalized service and the fastest funding in the industry, to boot.  We have millions to lend and we want your business so we don't want to let interest rates and fees stand in the way of funding your deal. So, go ahead and give us a try.

Generally No... but there are exceptions:
One exception is for well experienced investors who qualify for our Platinum Program.  

Another exception is for borrowers who have another property that they own free and clear and are willing to use the equity in that property to secure their loan along with the purchase property. 

Due to risk to the lender, Loan-to-Value (LTV) is usually limited to somewhere between 50 and 90 percent financing of the appraised value (or After Repair Value (ARV)), depending on credit, experience, property type and whether or not there will be cash out.  

The easiest investment properties to obtain financing for are residential properties (1-4 family units) where the loan amount does not exceed the FHA limit, and the unit size does not exceed 2800 sq ft, with a 5 bed/3 bath maximum, on a half acre lot or smaller and the purchase price is 20 percent or more below the After Repair Value (ARV).

• First, we are a private money lender brokerage, which means that we are not a bank and we don't have all the rules and limitations that a bank has like high personal credit rating limitations and restrictions, making it simpler and easier for you to get your money.  We source our funds from wealthy private individuals and firms who want to invest in real estate deals like yours and earn interest on their investment.  

• Second, we can get your money to you faster than a bank can, our turn around time for a completed funding application averages between 3-4 weeks as opposed to months for banks.

• Third, we specialize in real estate investment, and we are real estate investors just like you, so we know what your needs are and we understand you better than banks do.

• Fourth, we offer you personalized service with a dedicated broker to help you meet your funding needs.  We go the extra mile to make sure all the documentation is complete to insure that everything goes smoothly and quickly.  We work with you to help you get the loan that is right for you and we stay with you after the loan closes to make sure everything goes smoothly, and we will be ready for you when your next project is ready to be funded.

Our business hours are as follows:

Mon:    11:AM to 4:PM Eastern  (or 8:AM to 1:PM Pacific)

Tue-Thu:  11:AM to 7:PM Eastern  (or 8:AM to 4:PM Pacific)

Fri:    11:AM to 5:PM Eastern  (or 8:AM to 2:PM Pacific)

Sat-Sun & Holidays:  Closed.

No.  A credit check is optional and we have no minimum credit score requirements on short term loans for residential properties with four units or less. You may qualify for a short term loan with us even without good credit.  However, having a higher credit score may allow you to receive a lower interest rate and lower points on your loan.   (For long term loans (30 yrs) there is a 660 minimum credit score requirement.)  If you have damaged credit we can offer you help through Vista Credit Repair  (use promo code 'Sandy Beach Capital' to get your free initial credit repair consultation with a credit repair expert.).

No. Real Estate rehab experience is not required to obtain funding from us for your Fix and Flip deal.  We work closely with you to help you along the way even if this is your first Fix and Flip.  We want to help you succeed in your real estate investment business.

YES!  We also offer loans for inland real estate investment properties in rural, urban, suburban and exurban areas as well as in small towns and villages including residential multi-family properties with up to four units/apartments.  Your investment property doesn't have to be on the beach and doesn't have to be in Florida either.  We can fund real estate investment loans in many other states.  (For a complete list of states see the next FAQ below.)

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 U.S. territories, or foreign countries.  (We hope to expand to more states in the future as we grow.)

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). 

Usually when you refinance a mortgage loan on a property the lender uses all of the money to pay off the original lender.  With a Cash-Out Refinance some of the loan is paid directly to the borrower in cash and it can be used for other expenses or for whatever you need. 

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.

In most cases you can borrow up to 65% (or 75% to 100% in some cases)* of the LTV (Loan To appraised Value) or ARV (After Repair appraised Value) on a purchase with or without repair; or up to 70% of the LTV on a Cash Out refinance.  We can make most loans on amounts up to the FHA Cap, but we also offer Jumbo Loans (see Jumbo Loans FAQ below).

You can apply for your loan online today!  It's fast and easy.  Apply Online.

*Up to 50% of the LTV or ARV in the following high foreclosure reporting counties: Baltimore, MD; Cook, IL; Cuyahoga, OH; Wayne, MI.  

Sorry, no.  We don't offer loans for owner occupied or homesteaded homes.  We only make mortgage and refinance loans on non-owner occupied investment  and commercial properties.

Non-owner occupied means that the owner of the property does not live in the property, which means it is either vacant or rented to a tenant.  In other words, the property is for investment purposes only.

We only offer loans on properties where the mobile home is permanently fixed to the land and the land is owned by the borrower.  Contact us to discuss it in more detail.

Sorry, no we don't.  We only offer loans on real estate investment properties.

Yes! we do.  Contact us to discuss it in more detail.

A subject-to deal is when a real estate investor takes over the existing mortgage on a property without officially assuming it. The investor makes the payments on the seller's loan, but the loan stays in the seller's name. It's a way to buy property without needing to qualify for a new loan.  YES, we can make loans on Subject-To deals.

Residential property is generally a single family home, duplex (two family), triplex (three family), or quadruplex (four family) home with residence units on a single property, lot, or parcel of land.

Commercial property is generally five or more family residence units such as multiplexes, apartment, condo or townhouse complexes on one property, lot, or parcel of land, Planned Unit Developments (PUD) Tract homes, or Mixed-use (residential and retail), Self-storage unit complexes, or other non-residential properties.  

Yes! we do, including land acquisition for residential construction.  Contact us to discuss it in more detail.

YES! we do.  Contact us to discuss it in more detail.  Apply Online.

YES!  We do. You can apply online today!  It's fast and easy.  Apply Online.

YES!  We do. You can apply online today!  It's fast and easy.  Apply Online.

A jumbo loan is a residential mortgage loan that is generally larger than $500,000 or exceeds the FHA cap for qualified mortgage loans.  YES, we do offer jumbo loans to qualified borrowers.  Contact us to discuss it in more detail.  Apply Online.

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.

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.)

YES!  We do. We offer the Platinum Program for investors who have a proven track record of completed Fix & Flips and want better rates on their loans. 

In order to qualify for this program you must have completed 8 (or 4 through our primary lender, or a combination thereof) paid off loans (proof with HUD statements or lease agreements) within the past 24 months and your last 3 months of verified bank account statements through 'PLAID' (see the 'what is PLAID' FAQ above) and it must show that you have at least two times the amount of deposits as debits into your account.  

The program offers a flat 9.75% Interest Rate.  We can cover up to 100% of the transaction, and 100% of the Purchase Price, and 100% of the Rehab, and wrap 100% of the Closing Costs into the loan not to exceed 70% of the value.  

You get lower lender fees — 1 point (or 2 points with Rehab or Cash-Out).  Max LTV of 75% with a general appraisal.  The program has a non-refundable $997 Enrollment Fee (with a $500 annual program renewal fee).  You also get faster service with less paperwork for your subsequent deals with membership in the program.   

Contact us for more details about enrolling in the Platinum Program.   Apply Online.

We support charitable giving by donating a portion of every dollar we earn back to the community through charitable trusts.  100% of our net profit goes to charity.  Our donations support benevolent programs including food banks, medical transport, assisted living, and other services; for the elderly and disabled, and for veterans, widows, orphans, and the homeless through the SANDY BEACH CHARITABLE TRUST. The trust ensures that all donations provided benefit the people who need it the most.

Privacy Policy, Terms & Conditions of Use

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, L.L.C.’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, L.L.C.’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, L.L.C. 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, L.L.C.’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, L.L.C. 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, L.L.C.’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, L.L.C. 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, L.L.C. 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, L.L.C. 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, L.L.C.’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

Yes, see below.

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 Owned
TIN – Tax Identification Number
UCC Filing – Uniform Commercial Code Filing
UW – Underwriter