FAQ

Who do I contact for general inquiries at Coastal Capital?

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Answer: If you are already a current Coastal Capital client, you will have already been assigned a loan officer or direct representative that can help you with all of your lending needs.

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If you are a new client, we ask them you schedule a call with us by clicking here. You may also contact our offices at 336-739-0611. However, due to our constant evaluation of real estate projects we ask that you please schedule a time by visiting our calendar.

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Where do you currently lend money in?

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Answer: Our main specialty is funding deals in North Carolina. However, we lend throughout the United States with the exception of Alaska, Nevada, North Dakota, South Dakota, Minnesota and Vermont.

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How do your loan programs work?

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Answer: Hopefully by this time you have been able to take the time to navigate through our website to see our different funding programs and their requirements. If you haven't, click here to get an overview of the different types of loan programs we have and their requirements.

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In a nutshell, we make investment loans ONLY to new and experienced real estate investors who buy single-family residences (SFR’s), new construction lots, multi-family properties, 5 + Unit apartment complexes, and mixed-use properties. Our real estate investors then either renovate or prepare these homes for resale at a profit or refinance them to rent them out. Since we have specific short-term and long-term financing options, Coastal Capital can be your one place for all of your funding needs. We are a great fit for investors that want to quickly purchase homes and need a funding partner that can act quickly.

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In summary, the typical process is:

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• Find a property that will make you money, get it under contract, prepare your cost estimate for repairs and quickly provide us with your exit strategy.

• Send us these important details about the property and yourself and if you and property qualifies, get your funding when we close.

• For those that haven't secured a property under contract, that is fine as we can go ahead and get you pre-qualified for one of our loan programs.

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What type of documentation is needed for the loan application?

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Answer: Coastal Capital requires basic documentation to underwrite the borrower and the property. This includes an application; authorization to run a credit report and background check; copies of bank statements (proof of funds); property appraisal; copies of leases, if appropriate; renovation estimates; and documentation on the business entity.

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When doing a pre-approval, keep in mind that we are only pulling a soft inquiry on your credit so your credit will not be affected. If you decide to accept our loan proposal we may then initiate a hard inquiry. If you are a regular borrower, running credit on every deal you do will not be necessary.

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Do you have a minimum credit score?

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Answer: Coastal Capital’s bridge loans and After-Repair Value loan program have a minimum FICO requirement of 620. The Long-Term Rental loan program has a minimum FICO of 640. The New Construction loan program has a minimum FICO of 680.

 

With all loans at Coastal Capital, the borrower’s credit score is taken into consideration when underwriting the loan. Coastal Capital reviews the individual’s history to determine if there is a repeating pattern of poor financial management or if an isolated incident affected the individual’s credit. We also look at the borrower’s credit in terms of the exit strategy. If the borrower intends to buy and hold rather than fix and flip the property, we will pay closer attention to FICO scores. However, if you don't meet our typical minimums, don't despair as we have a special program for those that want to invest in real estate but need help improving their credit scores (see next question and answer).

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What if I am interested in a loan program but don't meet the minimum credit score requirement?

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Answer: Cash is King but Credit is Queen. If you don't meet our minimum credit score don't despair. We will evaluate each deal on its merit but we do have a credit program for those individuals that need to improve their credit scores but still want to make money in real estate investing. If you fit this category, please review our challenged credit section of the website to learn more about how we can get your on the right track.

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Does Coastal charge any upfront fees or costs?

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Answer: Absolutely not and this is where we are different from a lot of other private lenders. Coastal Capital does not charge any upfront fees during the pre-approval and approval process such as an application fee. However, the borrower is responsible for third party fees such as appraisals or project feasibility studies.

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Will you lend money to my corporation, LLC or my personal name?

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Answer: All loans at present are made to corporations, LLC’s and trusts only. We DO NOT lend to individuals personally.

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Do you have a prepayment penalty?

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Answer: Coastal Capital's 24-month Buy-to-Rent loan has a 5% pre-payment penalty if the loan is repaid during the first 6 months of the loan term. Coastal’s 30-year Long-Term Rental loan has adjustable prepayment options up to 5 years . There are no pre-payment penalties associated with Coastal’s other loan programs.

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How long will it take to get approved for a loan?

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Answer: Our typical turnaround time is 48 business hours or less. However, for more complex types of deals there may be a greater turnaround time. Nonetheless, our clients use us because we are extremely fast and we understand when it comes to securing a great real estate deal, time is of the essence.

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What can I use as collateral for my loan?

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Answer: For our Bridge Loans, After-Repair Value loan program and Buy-to-Rent loan program, Coastal will consider non-owner occupied 1-4 family & multi-family real estate, condos, townhomes, 5+ unit apartments & mixed-use properties as potential collateral. For our Long-Term Rental loan program, Coastal will consider non-owner occupied 1-4 family real estate, condos, townhomes, and planned unit developments (PUDs) as collateral.

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Do you fund rehab costs?

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Answer: Coastal Capital offers an After Repair Value loan program for non-owner occupied 1-4 family & multi-family real estate, condos, townhomes, 5+ unit apartments, & mixed-use properties. Coastal will lend up to 90% of the purchase price and up to 100% of the renovation costs, not to exceed to 75% of the after repair value.

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How many investment properties can I finance at one time?

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Answer: We don't put any limitations on the number of homes you use our funds for. However, we do consider your overall real estate experience as well as your experience with our company when considering multiple projects with you. We want to make sure no one is overwhelmed. However, fortunately we do have an experienced team to help you if you ever need us.

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Can I use Coastal Capital to purchase my personal residence?

 

Answer: No. Coastal is a private investment lender and real estate platform that lends to qualified real estate investors for business purposes ONLY. We do not provide funding for the purchase of any owner occupied residential properties. Our loans are strictly backed by non-owner occupied residential and commercial properties, and are issued to a business entity.

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Do you charge interest on the full amount of an ARV loan?

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Answer: Absolutely not. Unlike many of our competitors, Coastal Capital only charges interest on the current outstanding balance of an ARV loan. We do not charge interest on the hold back until the funds are drawn, saving you money.

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Will I need to get an appraisal?

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Coastal will order an appraisal from a qualified appraiser of their choosing who is familiar with evaluating investment properties. The appraiser will determine an “after repaired value” (ARV) based on the list of repairs that you and your contractor will be completing. The cost of the appraisal is usually between $350-$600. Commercial or multiple units could be substantially higher. Rush fees may be incurred for appraisals needed in less than 5-7 business days. This is typically the only fee incurred by our borrower but it will only be incurred after you accept our loan and begin the closing process.

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