FAQs

No, Platinum makes commercial loans on residential real estate, and cannot loan on a property that is occupied.

Platinum lends on residential real estate in Maryland; single family homes, detached and attached. We make loans on 70% of the ARV of the property.

We also loan on properties to add to your rental portfolio. Our loans are short-term, 6 – 12 months, so you will have to prove that you will be able to refinance the property with a bank, when our loan is due.

For qualified borrows, interest payments are deferred until the loan matures. For others, typically borrows with lower credit scores, loan payments are interest only, with a balloon payment at loan maturity.

No, there is no early repayment penalty. We charge 2 points and 12% (annual interest rate) for the first 6 month loan. If you were to pay the loan off prior to the maturity date, you would end up paying the interest for the period you had the loan. You are responsible for the points.

Overall, Platinum is concerned with your experience, financial stability, and credit score. We have loaned to borrowers whose credit score was a low as 600. Something else we consider is your plan for the property. Are you flipping the house or adding to your rental portfolio. If you are going to refinance the house to rent, then we will want to make sure your credit worthiness becomes more of an issue. Our loans are short term, and you will have to prove that you can obtain a loan from a bank, when the project is complete.

You will need to fill out the commercial loan application first; this will give us permission to retrieve your credit report. You will need your 2 most recent tax returns and 2 recent bank statements. We also need you to write up a brief description of your work history. Have you flipped houses before, and if so where? If you want to get this information to us prior to finding a deal, that’s great. This may increase the speed in which we can get you the loan, however we loan on a deal to deal basis. If the numbers on the project don’t make sense, we won’t lend on that particular deal.

At this time, Platinum loans in all of Maryland.

Lenders need a clear title to protect their investment. Platinum has a title company that we work with to ensure our interests are being met.

Use your HELOC for emergencies. Keep your personal finances and credit score solid.

We have seen inexperienced borrowers go to family members and friends, take out a HELOC, and even max out their credit cards on a deal. Then they are in trouble. Their credit takes a hit and makes it more difficult, or more expensive, to borrow from a hard money lender. I makes it difficult to pick up another deal. They may even get stuck picking up a partner that has good credit, and that cuts into profits.

You need a good contractor, a good realtor, and a great hard money lender. Be patient and be picky! Make sure you find a good deal and the numbers make sense. Again, be picky!

Find a reliable contractor. You may need to go through a few contractors to find a good one. Most of our successful borrowers have one or more contractors that they trust, and work with on a regular basis.

Find a good realtor that can help you with buys and sells; they can make money on both ends and are more likely to feed you deals.

You buy the materials. Pay your workers when the labor is done. We have seen borrowers pay for labor in advance, and then suddenly nobody is working on the house.

Some of our borrowers stick to certain areas or certain types of houses. This way they have a good idea what they are getting into from project to project.

We determine the amount we will loan to you based on experience and capability to handle several loans. Many of our borrowers have several loans with us.

The answer is more than likely, “No.” We don’t lend on personal residences, and you would need significant equity in another investment property.

We loan 70% of the After Repair Value (ARV) of the property. So, depending on the project, your credit, and experience; you may not have to bring any cash to the table.

Yes. We loan 70% of the ARV, so depending on the project, you may not need to bring any cash to the table.

Platinum does not charge for draws, draw inspections, or appraisals; where many other hard money lenders do. Instead Platinum charges a one-time $495 fee at closing for administration of your loan.

Yes. Typically we allow three, 3-month extensions, beyond the six month loan term. We charge 1 point per 3-month extension. Other hard money lenders charge 1 point per month.

If you are a broker or run a meet-up group we would be happy to help you and your valued clients meet their financial needs.