Why Larry Can Decide the Same Day
A lot of what slows a bank loan down doesn’t happen here.
Larry values the property himself, based on comparable sales. There’s no appraisal to order, schedule, and wait on, and no appraisal fee either.
There’s no hard credit pull. A personal guarantee is required, but your answer doesn’t wait on a credit bureau report.
And the terms are simple: one standard rate, 12.99% interest-only, and two loan terms, 6 months with 2 points or 12 months with 3 points.
A Decision Isn't a Closing
A same-day decision means you know, that day, whether Larry will make the loan and roughly how much he’ll lend. First-time borrowers typically get 70% to 80% of his valuation, and repeat borrowers and prime properties can go higher.
Closing is a separate step. The title work, the closing documents, and the signing all still have to happen, and some of that depends on people other than Larry. Next-day closing is possible. Whether your deal closes next day or a few days later usually comes down to how fast everything around the loan moves.
What Speed Does For You
Sellers like certainty. When you can tell a seller your financing is decided and you can close fast, your offer looks a lot more like a cash offer.
That matters when a seller wants out quickly, when another investor is bidding against you, or when a contract deadline is closer than a bank can handle. A conventional purchase loan takes around six weeks on average. A deal that has to close in a week doesn’t fit that timeline at all.
What It Costs
Larry’s standard terms are 12.99% interest-only, with 2 points on a 6-month loan or 3 points on a 12-month loan. There’s no application fee, no appraisal fee, and no prepayment penalty.
Who these loans are for
Got a deal on a deadline?
