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 We Lend.
Frequently Asked Questions
Who Is We Lend?
We Lend is a private money lender focused on servicing real estate investors by providing quick and low-cost capital on their investment properties. We Lend’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. We Lend 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. We Lend’s focus is centered around the question of whether the borrower’s acquisition is profitable for the borrower – We Lend wants to ensure that every borrowers acquisition is successful. Many believe that an asset-based lender holds the deed to the property; We Lend records a mortgage on the property and the deed is vested in the borrower’s entity.
Why go to We Lend versus a traditional lender?
There are several reasons as to why you should fund your deals with We Lend versus. a traditional lender.
(1) We Lend funds loans as quick as 3 business days; traditional lenders take 90 days on average – sellers prefer quick closings, so take advantage of We Lends 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 We Lend, you can identify yourself as an all-cash buyer and take advantage of the preferential treatment.
(3) We Lend finances properties in any condition; traditional lenders do not.
(4) We Lend does not require interior appraisals; traditional lenders do.
(5) We Lend finances properties with most issues on title; traditional lenders do not.
(6) We lend finances properties with tenants or squatters; most traditional lenders do not.
(7) We Lend does not ask for pay stubs; traditional lenders do.
(8) We Lend does not ask for bank statements; traditional lenders do.
(9) We Lend does not ask for tax returns; traditional lenders do.
(10) We Lend does not require the borrower to have a job; traditional lenders do.
Does We Lend finance the acquisition & construction, & what are the max leverages?
We Lend 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 We Lend’s rates?
Our rates depend on the borrower’s leverage.
Rates range between 8.5% and 9.99%.
Almost Free Money.
Does We Lend have any upfront fees?
Unlike other private money lenders who have fees prior to funding the loan, We Lend does not charge any upfront fees. The only upfront cost is the appraisal fee, which is paid directly to the appraiser.
Does We Lend only lend on investment properties?
Yes, We Lend only on investment properties. We Lend 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 We Lend 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, We Lend is ready to providea 15-18 month terms at no additional cost. There areno prepayment penalties on our loans, which meansthat you can pay We Lend 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 We Lend lend nationwide?
We Lend nationwide with the exception of 7States. We Lend does not lend in (1) Arizona,(2) Minnesota, (3) North Dakota, (4) Nevada,(5) South Dakota, (6) Vermont, and (7) WestVirginia.
Does We Lend require experience?
No, We Lend does not require experience. So even if you are purchasing your first
deal, We Lend is ready to finance. Remember, We Lend is an asset-based lender,
that’s the reason why we are not strict on experience. However, the more
experience you hold, the more We Lend. 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 We Lend’s credit score requirement?
620 FICO is excellent credit for We Lend. We Lend’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, We Lend 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 We Lend may still fund the deal. (Recent bankruptcies and foreclosures are within the past 2-5 years).
What if the property is not accessible, does We Lend accept exterior appraisals?
We Lend accepts drive-by exterior appraisals. We Lend 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 We Lend works with theborrower to accept drive-by appraisals.
Can We Lend provide proof of funds for contract negotiations?
We Lend 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 We Lend help find distressed properties?
Yes, We Lend is ready to introduce our borrowers to wholesalers who find off- market deals. Remember, We Lend’s founders were very active fix and flippers, they are ready to teach all their learned skills and disclose their sources.
What is We Lend’s minimum loan size?
We Lend’s minimum loan size is $100,000.
How long does it take to fund a deal from start to finish?
We Lend generally works on a 7 business day turnaround for a first-time borrower. If the borrower is a returning borrower with We Lend, then the turnaround time is 3 business days.
Can I do anything to expedite the time to fund a deal?
Yes, We Lend 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 We Lend now, this way when you find a good deal, We Lend within a couple of days.
What do I need to fund a deal with We Lend?
All We Lend 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 We Lend work with brokers?
Absolutely, most of We Lends business comes from brokers. We always strive to protect our brokers because of the value they add to We Lend.
Do I need a title report?
Absolutely! We have a number of title companies with whom we work regularly, whose AML and recording policies we are comfortable with. If you have an existing report, please ask your Loan Officer to check internally whether the report is acceptable or eligible to be recertified.
My entity has been existing for over 1 year, do I need a certificate of good standing?
Yes. A Certificate of Status/Good Standing, issued within 30 days of the closing date, is required to verify that the entity remains compliant with its biennial filing obligations.
What if there are liens, judgments, violations and other encumbrances on title?
It depends on the nature of the issue. In general, liens, judgments, violations, and other encumbrances that could prevent us from obtaining a “clear” lender’s title policy must be resolved prior to closing. In some cases where violations (such as ECB violations) cannot be cleared before closing, the title company may permit closing subject to an escrow requirement, often in an amount that is a multiple of the outstanding liens or penalties.
Do I need to have insurance at closing?
Yes. Loans with a renovation component (financed or not) need to have a builder’s risk policy. You are encouraged to source your own compliant policy, which will need to be approved by our insurance review team.
Do I need to have an attorney?
We always recommend having an attorney represent you in any real estate transaction, even in states where it is not legally required. An attorney can review contracts and closing documents, explain your legal rights and obligations, identify potential issues before closing, and help negotiate protections on your behalf. Having legal counsel also provides an added layer of protection and accountability, including the benefit of the attorney’s professional liability (E&O) coverage in connection with their legal review and representation
Do all members of the entity need to appear at closing?
Attendance by all entity members is generally required to facilitate an efficient closing process. In the event of extenuating circumstances, legal documents may be executed remotely and delivered via overnight mail to our legal counsel for formal review.
I signed the contract under my personal name and the loan is approved for an entity. How do I close?
Each contract contains unique provisions, some may permit the assignment of interest while others may prohibit it. Our legal counsel has extensive expertise in loan closures and funding structures, and will collaborate with you and your legal representative to establish an appropriate and mutually acceptable resolution.
Once I am finished with the construction and rented the property to tenants, can We Lend help me refinance into a low interest rate perm loan?
YES!! There is no greater compliment than giving us an opportunity to win your business when it comes time to refinance. We have an entire team dedicated to getting you the best terms possible through our various DSCR programs.