Sharestates Loan Process and Fees for Private Money Loans

– The Sharestates loan
process is relatively easy. We try to take as little
information as possible up-front from our borrowers, and provide them with a term
sheet as quickly as possible so that they know what they’re
getting themselves into before they’re too deeply invested. Our process starts with a
preliminary loan application, which is just a couple of pages, and provides very high level information on your proposed loan transaction. Once we receive that,
our underwriting team will be able to get you
a proposed term sheet in as little as an hour. Once you review your terms,
if you’re happy with them, all you have to do is
sign on the dotted line and provide us with a small
due diligence deposit, which covers our third party costs in underwriting your loan. And that deposit will be
credited to you at closing. After placing your share’s
due diligence deposit, we’ll start underwriting
your loan immediately. For us, that means ordering
third party reports, such as a credit report,
an appraisal report, and a title insurance report. As soon as your credit
and your background checks come back clean, we’ll
move on to the next step for underwriting your loan, which will be to start collecting
due diligence documents such as your organizational documents for the entity that you’re using, and closing on your transaction, as well as things like proof
of funds via bank statements. And a simple due diligence questionnaire, asking you what you’ll be
doing with the project, and what your rehab and
construction budgets look like. At Sharestates we charge
a $1000-$3000 deposit. That deposit is meant to cover our third party expense
in underwriting your loan. It covers things like your appraisal, your credit and background checks, and your title report. If you successfully close
your loan with Sharestates, we’ll credit that deposit
back to you at closing. Meaning you’re not paying
any additional junk fees. The only thing that we’ll charge you for is the actual cost of your appraisal and our lender’s legal fee. We have zero junk fees as
part of our closing process.

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