Fulcrum Lending

FAQ

Am I qualified for an Agency loan?

For Fannie Mae® Small Loans and Freddie Mac® Small Balance Loans, borrowers must meet certain credit/personal, operating experience and property requirements.

Borrower must:
- have a minimum credit score of 680
- have a personal net worth equal to the loan amount and available liquidity equal to 9 months of debt service
- be a US Citizen, although foreign nationals can be approved
- not be in any current litigation, bankruptcy, foreclosure, or party to any felonies or criminal activity
- live within 100 miles of the subject property or must have a third party property manager
- have at least a 90% occupancy at the subject property for the last 90 days

What drives your underwriting and valuation?

Our proprietary underwriting and valuation algorithm leverages vast quantities of national real estate data comprising recent multifamily purchases and refinances to create a ground up statistical analysis of your property’s free cash flow. We then couple this underwriting with recent cap rate data to arrive at a financable valuation.

Where does the data come from?

We leverage an extensive array of private and public data with an added layer of intelligence through our proprietary underwriting engine which extracts valuable insights hidden in plain sight. Additionally, our data goes through a rigorous cleaning process to ensure validity and accuracy.

What sets your underwriting process apart from other Lenders?

As an example, we understand not everyone budgets $1,000 per unit for repairs and maintenance (R&M) and that some buildings operate at lower amounts closer to $600 per unit for R&M. Using comparable data around your subject property, we fight to support your $600 per unit expense for R&M when the data supports it.

Why do lenders underwrite the property at a higher per unit expense cost than my historical financials?

The reason is that the lender is attempting to underwrite the property as if it were managed by themselves in the downside event of default. Now, using the previous example, if we can show the lender that not only the subject property, but other properties as well near the subject, can be operated and underwritten closer to $600 vs $1000 per unit, then we are able to deliver $400 per unit of incremental annual income to your bottom line (NOI), thereby increasing your proceeds.

How does LoanCenter help me grow my portfolio?

Active borrowers utilize LoanCenter to screen deals quickly and accurately to assess if the property is worthy of a deeper analysis. In today’s market where properties exchange faster than diligence can often be completed, every bit of edge in timing and information is key in deciding whether or not a property is worth acquiring. LoanCenter allows you to focus on the good deals and pass on the bad, thereby increasing your hit rate and overall portfolio.

I’ve already started the loan process with another lender, is it too late to use LoanCenter?

Many borrowers are baited by lender’s teaser rates and half-baked underwriting only to find themselves mid-way through the loan process seeking another way. It’s a story as old as time. We recommend borrowers use LoanCenter to protect against predatory lenders by comparing interest rates and underwriting proceeds to what we have underwritten.

How are you able to provide me with accurate quotes in less than 30 seconds?

Our loans are underwritten to the highest standards governed by Fannie Mae® and Freddie Mac®. Each underwriting handbook is nearly 1,000 pages. Typically an analyst reads each handbook and underwrites to the handbook’s specifications. Underwriting to these specifications and delivering a quote typically takes 24 to 48 hours. We knew this was unacceptable, so we automated the entire underwriting process by distilling thousands of pages into a single underwriting engine able to underwrite a property as fast as you can input the information.

Do I need to have an imminent financing in order to use LoanCenter?

Use LoanCenter anytime, anywhere. Walking down the street and wondering how much the building is worth, or reading an offering memorandum you just received? Input the information into LoanCenter and receive a valuation and quote in less than 30 seconds.