FAQ
You can find answers to some of our frequently asked questions below. If you need further assistance, please contact us or schedule a phone call at your convenience with an expert at Castro Financials.
Frequently Asked Questions
Who Is Castro Financials?
Castro Financials is a private money lender focused on servicing real estate investors by providing quick and low-cost capital on their investment properties. Castro Financials’s approach to lending is centered around the investor, therefore allowing the investor to focus more on their investment and less on the loan process. Castro Financials was founded by a group of real estate investors, whose emphasis was on acquiring and improving distressed properties. So whether or not you are an experienced real estate investor – WeLend’s team has the qualifications to exceed expectations and can assist in the expansion of your real estate portfolio.
What is a private money lender and how does a private money loan work?
We’re a private money lender that uses asset-based lending. Asset-based lending means that the decision making revolves more around the property and less about the borrower. Castro Financials’s focus is centered around the question of whether the borrower’s acquisition is profitable for the borrower – Castro Financials wants to ensure that every borrowers acquisition is successful. Many believe that an asset-based lender holds the deed to the property; Castro Financials records a mortgage on the property and the deed is vested in the borrower’s entity.
Why go to Castro Financials versus a traditional lender?
There are several reasons as to why you should fund your deals with Castro Financials versus. a traditional lender.
(1) Castro Financials funds loans as quick as 3 business days; traditional lenders take 90 days on average – sellers prefer quick closings, so take advantage of Castro Financialss closing time.
(2) Sellers prefer dealing with an all-cash buyer and extend preferential treatment for that reason; by choosing to fund your loan with Castro Financials, you can identify yourself as an all-cash buyer and take advantage of the preferential treatment.
(3) Castro Financials finances properties in any condition; traditional lenders do not.
(4) Castro Financials does not require interior appraisals; traditional lenders do.
(5) Castro Financials finances properties with most issues on title; traditional lenders do not.
(6) Castro Financials finances properties with tenants or squatters; most traditional lenders do not.
(7) Castro Financials does not ask for pay stubs; traditional lenders do.
(8) Castro Financials does not ask for bank statements; traditional lenders do.
(9) Castro Financials does not ask for tax returns; traditional lenders do.
(10) Castro Financials does not require the borrower to have a job; traditional lenders do.
Does Castro Financials finance the acquisition & construction, & what are the max leverages?
Castro Financials is ready to finance up to 90% of the purchase price and 100% of the construction cost (not to exceed 65% of After Repair Value). However, We
Lend’s leverage depend on the borrower’s experience. For example:
• No experience (0 flips): up to 70% of purchase & 100% of construction cost
• Low Experience (1 flip): up to 75% of purchase & 100% of construction cost
• Some Experience: (2-3 flips) up to 80-85% of purchase & 100% of construction cost
• Experienced (3-4+ flips): up to 90% of purchase & 100% of construction cost
• Compensating factors: If the borrower is a licensed General Contractor or
Real Estate Agent then we can add an additional 5-10% leverage (however, it cannot exceed 90% of the purchase price and 65% of ARV)
What are Castro Financials’s rates?
Our rates depend on the borrower’s leverage.
Rates range between 5.5% and 15%.
Almost Free Money.
Does Castro Financials only lend on investment properties?
Yes, Castro Financials only on investment properties. Castro Financials does not finance owner-occupied properties.
How much time do I have to repay the loan & is there a prepay penalty?
All loans are for a period of 12 months unless theborrower (prior to funding) notifies Castro Financials that 12months is insufficient. Typically more time is neededwhen the construction is extensive, for example, thereis a conversion taking place or an extension beingadded. If that is the case, Castro Financials is ready to providea 15-18 month terms at no additional cost. There areno prepayment penalties on our loans, which meansthat you can pay Castro Financials as soon as 5 days and haveno penalty added.
What happens if we exceed the term?
This rarely happens. But in the event it does,we are ready to extend the term for an additional fee.
Does Castro Financials lend nationwide?
Castro Financials nationwide with the exception of 7States. Castro Financials does not lend in (1) Arizona,(2) Minnesota, (3) North Dakota, (4) Nevada,(5) South Dakota, (6) Vermont, and (7) WestVirginia.
Does Castro Financials require experience?
No, Castro Financials does not require experience. So even if you are purchasing your first
deal, Castro Financials is ready to finance. Remember, Castro Financials is an asset-based lender,
that’s the reason why we are not strict on experience. However, the more
experience you hold, the more Castro Financials. For example:
• No experience (0 flips): up to 70% of purchase & 100% of construction cost
• Low Experience (1 flip): up to 75% of purchase & 100% of construction cost
• Some Experience: (2-3 flips) up to 80-85% of purchase & 100% of
construction cost
• Experienced (3-4+ flips): up to 90% of purchase & 100% of construction cost
• Compensating factors: If the borrower is a licensed General Contractor or
Real Estate Agent then we can add an additional 5-10% leverage (however,
it cannot exceed 90% of the purchase price and 65% of ARV)
What is Castro Financials’s credit score requirement?
620 FICO is excellent credit for Castro Financials. Castro Financials’s biggest concern with credit is to ensure that the borrower does not have any active or recent bankruptcies, foreclosures, or serious delinquencies, and active judgments. Remember, Castro Financials is an asset-based lender, that’s the reason why we are not strict on credit – so even if the borrower has a credit score less than 620 Castro Financials may still fund the deal. (Recent bankruptcies and foreclosures are within the past 2-5 years).
What if the property is not accessible, does Castro Financials accept exterior appraisals?
Castro Financials accepts drive-by exterior appraisals. Castro Financials understands that not every property is accessible (and that may be the reason why the borrower is getting a discount on the purchase price), so Castro Financials works with theborrower to accept drive-by appraisals.
Can Castro Financials provide proof of funds for contract negotiations?
Castro Financials is ready to send our borrowers proof of funds so that the borrower canconfidently negotiate with the seller or their brokers as a cash buyer. )
Can Castro Financials help find distressed properties?
Yes, Castro Financials is ready to introduce our borrowers to wholesalers who find off- market deals. Remember, Castro Financials’s founders were very active fix and flippers, they are ready to teach all their learned skills and disclose their sources.
What is Castro Financials’s minimum loan size?
Castro Financials’s minimum loan size is $100,000.
How long does it take to fund a deal from start to finish?
Castro Financials generally works on a 7 business day turnaround for a first-time borrower. If the borrower is a returning borrower with Castro Financials, then the turnaround time is 3 business days.
Can I do anything to expedite the time to fund a deal?
Yes, Castro Financials recommends getting pre- qualified prior to needing the financing. Normally, borrowers call us within a few days of having to close a deal and although it is doable, it causes preventable stress. So what we recommend is to get pre-qualified by Castro Financials now, this way when you find a good deal, Castro Financials within a couple of days.
What do I need to fund a deal with Castro Financials?
All Castro Financials needs to approve a deal is
(1) Purchase documents,
(2) Corporate documents,
(3) Title,
(4) Borrowers Photo ID,
(5) 620 credit,
(6) Appraisal (exterior or interior),
(7) Scope of Work, and
(8) Personal Financial Statement (self-declared, no bank
statements or tax returns needed).
Does Castro Financials work with brokers?
Absolutely, most of Castro Financialss business comes from brokers. We always strive to protect our brokers because of the value they add to Castro Financials.
Who Is Castro Financials?
- Call us at 361.208.7181
- Email us at info@castrofinancials.com.
- Visit us online at www.castrofinancials.com