Do you offer residential loans?
Navigator Private Capital makes short- and long-term commercial loans to business entities purchasing residential properties and is not a traditional residential mortgage lender.
What is the maximum loan to value you will consider?
We will extend financing to cover the purchase price of the property plus the estimated repair costs as long as the loan to value (LTV) ratio does not exceed 75 percent. The loan to value ratio is calculated by dividing the total loan amount by the estimated after repair value (ARV) of the property. Borrowers are encouraged to consult a licensed real estate agent or broker who will perform a comparative market analysis to determine the ARV.
What is the standard loan to cost you typically fund?
From a loan to cost perspective, our standard loan funds up to 85 percent of the purchase plus rehab combined. The loan amount includes 85 percent of the rehab budget and 85 percent of the property purchase. As an example, for a property that is purchased for $300K with a $100K rehab budget, we would loan up to $340K with $60K in cash brought to closing. For repeat borrowers with solid experience and good credit who bring cash to closing, we will consider pushing our loan to cost to 90 percent of the total outlays.
Can I refinance my short-term loan to something more long-term?
The short answer is yes. For some of our borrowers, the intended exit strategy on their fix and flip is actually to turn it into a long-term buy and hold. In these cases, we offer rental financing with terms up to thirty years. In addition to the typical 30 year fixed mortgage, we have several adjustable rate options including 3/1, 5/1, 7/1 and 10/1 ARMs. And for those borrowers interested in accessing their equity, we will consider cash-out refinancing in certain cases.
For specifics about our rental loan program, visit our website. To get a quote for a long-term loan, log into your Google account and download this PDF file. Once you complete it, email it as an attachment to firstname.lastname@example.org. We will get back to you as quickly as possible with a loan offer.
How are you different from hard money lenders?
The primary difference between hard money lenders and private lenders like NavCap is negotiability. Hard money lenders usually have set criteria that borrowers must meet as far as asset value and equity are concerned. Private lenders, often smaller and more nimble than their hard money peers, have more leeway for negotiating terms and rates. While hard money lenders can be somewhat hard nosed when it comes to payments and maximizing their return on investment, private lenders such as NavCap focus more on growing long-term, symbiotic relationships. As far as we are concerned, a successful flip means a happy borrower which leads to more profitable deals down the road. We work hard to establish mutually beneficial business relationships and are committed to the profitability and success of our partners.
Where do you lend?
Currently, we fund short-term, low-risk renovation projects and long-term rental projects throughout underserved communities across the country with the exception of AK, CA, ND, NV, SD, UT and VT (unless the loan amount exceeds $1M). NavCap is proud to meet a critical need not satisfied by traditional commercial investment vehicles. We believe in the power of capital investment to transform neighborhoods and improve lives.
How are your Broker and Referral Programs different?
Our success is driven directly by the success of our clients. Plain and simple. By providing the flexible, short-term financing that our borrowers need and want, we fill a void left by traditional lenders. That said, we are always on the lookout for solid new deals and have two programs to help spread the word.
For mortgage professionals with fix and flip or buy and hold clients in search of financing, our Broker program is the perfect vehicle to connect the dots. After registering on our website, approved Brokers will assist their clients throughout the loan application process—following the loan all the way through to closing. After ensuring the deal’s viability, NavCap will do everything in its power to bring about a positive outcome for all involved. Once the deal closes, you will earn up to 2% (points) right on the settlement sheet at closing.
Maybe you are not a Broker but have contacts in the market for short-term renovation or long-term rental financing. Take advantage of our Referral Program and earn some cash. All you have to do is pass along your contact’s information on our website, and you’ll earn a one-time $1,000 referral fee when their loan (or loans) closes. No fuss. No muss.
Who is eligible to join our Referral program? Well, virtually anyone but especially:
Real Estate Agents