1. How do I get started with Coastal Equity Group? 

Getting started is simple and easy. The first step will be to complete an online application which includes providing basic information about yourself, entity information, experience, and the deal you’re requesting to be funded.  The application can take as little as 15 minutes and our lending team receives a notification once completed.

2. How quickly can I get funded?

At Coastal Equity Group, we pride ourselves on providing our clients with a streamlined loan process. We can close a loan in as little as 5 -7 business days after our lending team has received all the required documentation – Entity Documents, Appraisal, Title, and Insurance.

3. What if my budget numbers change during the rehab process? Can I change the budget in the middle of the project?

The budget line items can be rearranged as long as the total rehab budget remains the same. This can be completed by submitting a change order form. If your budget goes significantly over and the borrower cannot come out of pocket, then we will need to refinance the loan to include the larger budget.

4. How are your loans structured?

Short-term loans such as Fix and Flip, Bridge, New Construction, and Multifamily are all based on an LTC (Loan-to-Cost) structure. Loan to Cost measures the ratio between the Total Loan Amount and the Total Project Cost. The LTC percentage will need to be within a certain ARV percentage. The qualifying ARV percentage (65% -70%) is based on experience and credit.

5. What are the fees associated with Coastal Equity Group loans?

Prior to closing, the borrower will be responsible for the full payment of the Appraisal or BPO and the property insurance. At closing, we charge a processing fee of $1,395 for short-term loans and $1,495 for our long-term rental loans.

6. How does the underwriting process look like after the first deal?

At Coastal Equity Group, our goal is to fund quickly and to ensure the process remains simple. Once a loan has been funded by Coastal Equity Group, the borrower is pre-approved and will only need to provide updated bank statements to begin the next loan. 

7. Do you have income requirements?

Our financial requirements pertaining to the liquidity available to the borrower. We’ll require a minimum of 60 days in bank statements. The borrower must have enough cash to close for the down payment, closing costs, and at minimum 6 months interest payment reserves.

8. Do you take 2nd lien position on a loan?

Coastal Equity Group will only take 1st lien position and does not allow any 2nd position liens while we are the lien holder. 

9. Is there a minimum purchase price or minimum loan amount?

Our minimum purchase price for fix and flip and bridge loans is $75,000 with a minimum loan amount of $100,000. Any loan values below this amount may not provide enough protective equity.

10. How do you fund your rehab/construction reserves?

Rehab and/or construction reserves are on a draw schedule. Draws are based on work completed. When a draw is requested, our inspector will visit the property in the next 48 – 72 hours and funds will be released in a minimum of 3 business days.

If you’re interested in learning more about your lending options for our real estate investments you can reach our team by calling 843-737-0182 or emailing info@coastalequitygroup.com. We’re here to answer your questions!