Mini Test for Pre-Approval... (good luck)

1. Is your loan request over $150,000?

a. Yes - good, then it is at least the minimum loan amount I can make, keep going.
b. No - if the loan amount is under $150,000 then it's too small. Please leave, I cannot help you.

2. Is your loan request under $3.2 million dollars?

a. If the answer is "yes" - good news! It is not over my maximum loan amount I can make. Proceed on.

b. Yes - it's a nice big loan request over $3.2 million. Bummer, this is too big for me. I will not risk more than $3,200,000 on any one loan. Do not pass go, do not collect $200 and please leave this site.

3. Is this a 1 to 4 unit residential property?

a. If the answer is Yes, then this would be a residential loan, and I am DEAD. If this is the case, then I cannot make the loan - try elsewhere.
b. No, it is not a 1- 4 unit property. Good! Continue on with the hard money test. Thanks for understanding that I cannot make residential loans.

4. Bad Credit borrower?

a. Obviously, I would rather make a loan to a decent credit score borrower, but I can make a loan to an "F" credit score borrower - as long as there is real equity in the deal, and the borrower has a realistic way of paying me back.

b. The better the borrower and the deal, the better my loan terms will be - common sense stuff.

c. Does the borrower have a realistic and "do able" exit strategy? Remember, I only offer very short term loans (usually with a 1 year balloon date). Can the borrower pay me back? Will the property be sold to pay me back, or will a new loan from another lender pay me back? If you are sure of your exit strategy then please proceed forward, otherwise it's been nice knowing you - bye bye.

5. Is this a construction loan, or a rehab loan based on future value?

a. If this is a construction loan request or rehab loan, then we are dead in the water. Stop now, I can't help. Try getting in touch with a lender that specifically does construction loans.

b. No, this is not a construction or rehab loan - excellent, we can continue.

6. Clean title and Appraisal: Regarding the appraisal process, I must be involved in the appraisal ordering. I will chat with 2-3 local appraisers to the property.

I will pick one to do the appraisal assignment under my direction. Again, I am only interested in the "as-is" value of the property using a quick sale time frame. The appraiser must be paid up front by the borrower.

a. "This is completely understandable. I know you want a real value for the property" - please continue on with the test - I like you.

b. "Hey, I know the best appraiser in town, all the banks use him. He does a great job and can do it by this afternoon, can't we just use him?" - Thanks, but no thanks. Maybe you can talk the local bank into using Uncle Rico. Good luck, and please leave.

c. "We already spent $15,000 on the best appraisal possible, will you just use this existing appraisal?" - sorry for your expense, sounds like someone didn't really know what they were doing, but I need to make sure that no appraisal fraud happens when my money is involved. I must order the appraisal.

7. Is this a purchase transaction?

a. Yes - currently someone else owns the property and I am trying to buy it.
b. No - I already am on title to the property and this is actually a refinance transaction.
c. If you do not understand the question, please shut off your computer, come back in 1 year.

(You must click on either 7a or 7b to continue)