You've Got Questions,
We've Got Answers
How can I borrower against my 401k or IRA?
Easy, we were actually the team that set up this program. It does require a few more steps than one may be used to. However, our in-house team provides a seamless loan process where the 401k or IRA can be the 100% owner of a property. You're self-directed retirement account can get 75% LTV at a low 4.00% rate. The minimum loan is $1 million and the property has to have more than five units. It's a process that we are familiar with and can close in as little as 45 days. Call and see for yourself. Please contact your tax professional to verify.
I don't know a lot about the loan process. Do you have someone who can guide me through a closing?
Yes, we have in-house help and can process most paperwork for you.
How much Liquidity and what does my Net Worth have to be?
How is the interest rate for my loan determined?
The rate of any loan is determined by a multitude of factors, but let's just keep it simple for now. First, every loan is priced over an index which is commonly either the US T-Bill or LIBOR. Based on the risk associated with the transaction, the spread is then added to the index. Let's say that you want a 5-year, 75% LTV, Freddie Mac loan for a 10-unit apartment building that you're looking to refinance. If that property was built in 1958 and is located on Wilshire Boulevard in Santa Monica, CA, the spread is going to be less than the same 10-unit building located in Jacksonville, FL. We have nothing against Jacksonville, but I think we can all agree that Santa Monica is a stronger and safer market.
What origination fees are involved for loans?
0% from Urban Standard. There is always an origination fee that the lender charges. For loans under $5 million, the fee can go up to 3% of the loan. This is the cost of doing business. Freddie Mac is going to spend just as much time processing a $100 million loan as they will a $1 million loan.
What about loan deposit costs?
$10,000 for loans under $5 million. We are usually able to refund some of the deposit at closing if the client decides to chose us. The deposit can be $30,000 or more for larger loans which we consider to be more than $25 million
What does the loan deposit cover?
Every loan requires an appraisal, engineering report, loan document preparation, legal review, underwriting, title, escrow, seismic review (in some cases only). The deposit covers all of these costs. The amount you save in interest and the loan proceeds that we provide will more than compensate you for a small deposit. WE DO NOT ISSUE TERM SHEETS, UNLESS WE ARE 99% SURE THAT WE WILL CLOSE!
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Newport Beach Office
4590 MacArthur Boulevard, 5th Floor
Newport Beach, CA 92660
Beverly Hills Office
9107 Wilshire Boulevard, Suite 450
Beverly Hills, CA 90210