Phone: (707) 921-2416

Address: 3510 Unocal Pl Suite 101 Santa Rosa, CA 95403

Website: http://www.platinumprivatecapital.com

States They Lend In: California

Where Opportunity meets Capital

 

Platinum Private Capital provides funding sources for all your real estate investments.

Platinum Private Capital maintains a large network of portfolio lenders, private mortgage funds and individual investors in addition to lending its own capital. These lenders are looking to fund viable real estate transactions across a wide selection of property types (residential, multifamily and commercial) and for any number of purposes from a purchase transaction to construction/rehab to providing liquidity to an estate.

Banks look for strong credit, stable cash flow, sizable down payment and properties in better than average condition. This “cherry picking” of deals allows them to offer the best rates and terms to those select few borrowers and properties that can meet all the criteria.

Unfortunately, there are fair more opportunities for a real estate investor to capitalize upon then traditional cookie cutter deals that the Bank will lend will lend upon. This is where Platinum Private Capital can help.

 

Our primary underwriting criteria are:

 

• Equity – the borrowers “skin in the game”
• Property – condition, title, conforming use, surprise liens and encumbrances
• Strategy – What is the purpose and goal surrounding the purpose of the loan.
• Borrower’s credit profile – Secondarily, we look at the credit profile of the borrower

 

There are any number of scenarios where Platinum Private Capital can assist in creating a successful real estate transaction.

 

Market… Many borrowers no longer can meet the rigid underwriting guidelines of Banks due to a number of factors including credit, income and property condition. This void has been filled by the private investor who base their loan decision on the protective equity in the property, common sense and the exit strategy of the borrower.

 

Speed… Private money is also commonly used by investors with good credit and income because it usually funds quicker than traditional Bank financing thus allowing investors to capitalize on opportunities available in today’s real estate market, closing can happen in a little as 7 days.

 

Connected… In addition to its own capital, Platinum Private Capital maintains a large network of portfolio lenders, mortgage funds and private lenders to serve this market who are always looking for the right opportunity to invest their money.

 

If you have a loan scenario that you think might benefit from a private loan, please fill out the Loan Scenario Form and someone will be in contact shortly to discuss your financing needs.

 

Private Money

 

Private money is used as the bridge or gap to acquire a property or to liberate equity in a property that allows the borrower to take the property from its current condition to its highest and best use.

The private lender is usually repaid from the sale of the property or the refinance of the property because the property now qualifies for more favorable terms and conditions offered by traditional institutional lenders.

Structured correctly, private money can be used on almost all property types, property conditions or loan purposes.

 

 

Private Money Advantages:

 

Common Sense Underwriting:
Private Lenders underwrite the property and the story surrounding the deal, they are less concerned about making sure every box is checked, every I dotted and t crossed in order to securitize and sell a loan in the secondary market.

 

Speed:
The market has many opportunities that require and investor to move quickly. The investor may have the credit and income to qualify for tradition financing but timing does not allow for 30-45 day loan process so they use private money to capitalize on these opportunities, a private loan can close in as few as 7-10 days.

 

Alternative Income Documentation:
Private lenders will look at alternative income sources, like bank statements and may allow less time on the job in order to document repayment if the loan requires the monthly payments.

 

Property Condition:
Conventional underwriting has certain health and safety requirements and may require certain repairs to be made prior to lending on the subject property. Private money is less concerned about the property condition and more concerned with the likelihood and reasonableness of the loan purpose to bring the property back to marketable condition.

 

Loan purpose:
In addition to making loans on properties in there “as is” condition, Private lenders will make constructions loans and addition to rehab loans. This market segment is largely void of traditional lenders.

 

 

Private Money General Terms:

 

• These are some general guidelines, each deal is reviewed and analyzed based on its own risk factors.
• Loan to Value: 60-70%
• Fix and Flip Loan to value: 70% Purchase Price or 65% After Repair Value
• Short Term 6-36 months
• First Trust Deed s Only
• Minimum Loan Size $100k
• 8% -12% Interest Only
• 3-6 points

 

Private Money Application Checklist:

 

• Executive Summary – Brief overview of the purpose of the loan, exit strategy to repay the loan and a little about the borrower. (experience level, individual, LLC, LP etc)
• Loan Application
• Purchase Contract – if purchase
• Income documentation if the property generates cash flow (tax returns, rent roll, copies of leases etc)
• Source of Funds for down payment – if purchase
• Detailed Rehab/Construction budget or cost breakdown
• Building Plans if available
• Articles of Incorporation – (LLC, Partnership or Corporation only)
• Operating Agreement – (LLC, Partnership or Corporation only)

 

Alternative Financing

 

Alt A or subprime lending is making its way back into the market to address the millions of borrowers who suffered financial hardship from the real estate market downturn and the overall national recession who are trying to refinance their existing property or reenter the market with a new purchase.

These programs are primarily targeted towards owner occupied properties although some do offer non owners programs.

Alt A programs offer lower rates and longer loan periods than private or hard money loan programs.

Most do not take into consideration previous short sales, foreclosures or bankruptcies of the borrower.
Primary Market:
Conforming Fallout, this program is designed for borrowers who “just missed” getting a conventional loan or have a recent short sale, foreclosure or bankruptcy.

 

General Terms:
These loan programs offer lower rates, longer loan periods and less equity or down payments. Loan terms can range from 5/1 ARMs to 30 year fixed. Typically, for the borrower to qualify for the longer terms and lower equity requirements, as low as 10% down payment, borrower FICO scores must be 550 or higher. Borrowers must also be able to document ability to repay.

 

Alternative Financing Application Checklist:

Loan Application – Download “here” to print and complete by hand or “apply now” to apply on line.

 

All Applicants:

 

1. Personal Tax Returns (1040’s) – 2012 and 2013 all pages and all Schedules(Federal Only)
2. K-1’s you may receive from partnerships or investments, all pages (Federal Only)
3. Bank Statements – 2 most recent months, please include all pages
4. Investment or Retirement account statements, please include all pages
5. Homeowners Insurance – Copy of recent statement for subject property or name of agent
6. Mortgage statement – current statement for subject property
7. Copy of Driver License(s)

 

Self Employed Income not reported on Schedule C: (applies when you own more than 20% of a business):

 

1. Business tax returns (1120’s or 1065’s) 2012 and 2013 all pages and schedules (Federal Only)
2. Year to Date Profit Loss

 

Employment Income:

 

1. W-2’s for 2013 and 2012
2. Paystubs covering the most recent 30 days (typically 2 paystubs)

 

Retirement Income & Miscellaneous:

 

1. Awards Letter if available
2. Child Support or Alimony – If obligated to pay, please include a copy of the divorce decree

Commercial

 

The small balance commercial space is largely a fragmented, inefficient market for investors and buyers seeking financing in this space.

The deal size is typically low enough to fall below the radar of large institutional lenders leaving the market to be addressed by smaller regional Banks.  These Banks have undergone the same scrutiny as the larger banks have and have been forced to tighten their credit criteria and underwriting guidelines.  This restrictive lending policy has made it difficult for investors looking to capitalize on market opportunities within this space to obtain financing.

Platinum Private Capital can assist investors obtain the needed financing within this space by offering Bridge or Gap Financing in addition to our longer term loan programs.

 

These “bridge” or “gap” loans are short term in natures, giving borrowers time and money to:

 

• Rehab/Renovate
• Tenant Improvements
• Reposition, re-tenant, lease up
• Stabilize cash flow
• Most property types considered
• Multifamily
  • Warehouse
  • Vineyards
  • Industrial
  • Office
  • Special Purpose

 

This time provided by Platinum Private Capital allows sufficient time to pass so the borrowers income can stabilize or so credit issues are no longer considered by lenders (short sales, foreclosure, Bankruptcy), giving the borrower opportunity to refinance into longer more favorable loan terms.

 

General Terms

 

• Loan to Value:  65%
• Short Term 12-60 months
• First Trust Deed s Only
• Minimum Loan Size $100k
• Interest Only
• Rates and points vary by location, loan size and property type.

 

Commercial  Application Checklist:

 

• Executive Summary – Brief overview of the purpose of the loan, exit strategy to repay the loan and a little about the borrower. (experience level, individual, entity etc)
• Loan Application
• Purchase Contract – if purchase
• Income documentation if the property generates cash flow (tax returns, rent roll, copies of leases etc)
• Source of Funds for down payment – if purchase