South End Capital Corporation (SECC) has long been a hard money lender to watch. They seem to regularly change the rules and offerings to make it easier for real estate investors and other buyers and developers to get the money that they need. They have announced some new changes on how they conduct their lending operations, particularly in terms of bridge lending. The biggest change is that they want to move away from asking borrowers to pay a huge fee upfront, and they want to cancel the dreaded due diligence deposits. Unsurprisingly, other lenders in the industry are wondering how to deal with these changes, as they want to keep up and remain competitive. Noah Graysen, Managing Director at SECC, has explained the rationale behind this move.
Traditionally, bridge lenders or hard-money real estate lenders demand large due diligence deposits upwards of $30,000. They also mandate the order of their own appraisal reports. But SECC’s core commercial bridge program [from $250K to $5M] does not require upfront due diligence fees.
Lower Fees Charged by SECC
Naturally, even SECC will have to charge some fees, but they are surprisingly low. All they will ask for is a site inspection fee or other forms of third-party appraisal, which will cost between $1,500 and $3,000. This is significantly below the costs charged by other lenders in California and only has to be paid once a letter of intent is available. Another important element is that the real estate loan application is now quicker and easier than ever before.
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Appraisals will still be needed, which is standard with bridge loans and other hard money loans. In this case, SECC has changed the standards again. So long as a report exists and it was issued within no more than nine months, they will accept it. This means that it is easier than before to supply the appraisal report, instead of having to apply for new ones all the time. Should a new appraisal be required, SECC wants to make sure that the cost of due diligence remains affordable for their clients. This means that it will never cost more than $2,500, as they have agreed to cap this price.
It is very common that borrowers struggle to get the costs required for applications. Many hard money lenders have exorbitant costs in place, running into the thousands of dollars, for appraisals, reports, and other out of pocket fees. If borrowers inquire with multiple lenders, they often have to pay these costs multiple times, even though the same report will be produced. In contrast, SECC feels that borrowing should be affordable for their clients, and they believe that the loan process itself should be sensible, even if the borrower is traditional in nature. Since its establishment, the South End Capital Corporation has set itself apart as a lender with a difference, and this is one of their clearest benefits.
South End Capital Corporation ‘SECC’, founded in 2009, is a nationwide, non-conforming lender (CA Finance Lenders License # 603 L334) providing commercial and investment residential real estate loans, bridge loans, fix and flip loans, subprime SBA loans, easy documentation business term loans, “No Credit Check” business lines of credit and merchant cash advance (MCA) consolidation loans. SECC offers excellent service, prompt responses and custom tailored financing.
SECC Named One of the Best Companies
In many different financial reviews, both national and state-wide specific to California, SECC has been named as one of the best companies around. Indeed, both TopTenReviews and Fit Small Business named them “top ten best” and “the best”, respectively. Their expertise in investment and commercial real estate loans, including subprime SBA loans, bridge loans, and many other types of loans, is what has set them apart in the industry. Indeed, they offer significant benefits that other lenders simply cannot seem to be able to meet.
SECC offers easy online applications, excellent service, prompt responses, generous compensation to approved partners, and custom-tailored loans.
Since the company was founded in 2009, they have always prided themselves on the fact that they work with non-traditional borrowers. They understand that the vast majority of people simply cannot meet the application criteria set by banks, or that the offerings of banks aren’t fit for purpose even if they do meet the necessary criteria. What also makes them unique is that they truly look at each case on an individual basis.
Through bridge loans, South End Capital offers a different way for you to get financing. This lender offers nationwide coverage as long as you secure the loan with a commercial or residential property. As long as you have everything filled out correctly on the loan application, you could be approved and have the loan closed in two to four weeks.
SECC Offers Loans to Those Turned Down by Banks
Through this work, they have been able to offer loans to people turned down not just by banks, but also by other types of investors, the ability to purchase real estate projects through the country. Although they are based in California, they offer help on properties in any other area of the country as well. In so doing, they have been able to corner a significant national market share, something that is worrisome for many other hard money lenders, who see in them a significant competition.
SECC was founded just as the Great Recession ended in 2009. Since then, they have been able to grow significantly and have now developed a national positive reputation. There are very few companies who can say the same, with most of them either having gone under during the Great Recession or having waited several years before forming. According to some financial experts, SECC has played an important role in rebuilding the country’s real estate market. Since borrowing the needed funds has become increasingly difficult since 2008, there has been a real need for hard money and other non-traditional lenders like SECC.