Q. What type of product do you offer? A. For residential loans over 1.5 million we offer a LIBOR plus 2%, a 5yr ARM-I/O, and a 10yr ARM I/O this product is NOT credit driven. For loans under 1.5 Million we can consider the 3,5,7,10yr ARM, 15 and 30yr fixed, this product needs a score of 680 plus to qualify. For asset based and securities loans, 1.5% over LIBOR is offered.
Q. What type of Borrowers Qualify ? A. Our focus is on high net worth borrowers. If the borrower has good income, and can show cash flow in the personal or business tax returns and show post closing reserves we would consider a loan. We are also very observant of the borrower's occupation. Some jobs carry certain risks to lending. example, we will have a harder time with a borrower that is a home builder or realtor, vs. a professional ball player or business person with a history of wealth building. Also your conventional self employed stated borrower has a home here. We don't do loans as stated, but as a cash flow against the business. example, the borrower that has a 5 million loan request and 100k per year personal income, that fits here. We cash flow the business to service the debt, most very high net worth borrowers use the same accounting practice which we are very familiar with.
Q. What states does the programs cover ? A. This program is nationwide, Alaska and Hawaii also.
Q. How am i protected ? A. we don't use NCNDs for these deals. If you have ever been in anything close to serious litigation you would know they don't work. More important we don't have the staff to draw a doc on every deal we look at, so to make it simple if we have a deal we put you on our disclosures for your fee. In addition the disclosures we draw are compliant and are suitable to disburse funds from closing. We can not use outside fee agreements with the borrower as they can not be used to disburse funds and stay compliant, so our attorney will not recognize any document other then what we have drawn.
Q. What does harbour do that is so special ? A. It is the partners of Harbour Equity Partners that are the bankers behind the structures that are offered. Our team is very creative in structuring deals that will fund. In a industry where there is allot of time wasted trying to find money for projects and borrowers, we have arranged a unique process here to offer loans on very high end property and or assets. We have the ability to get very high LTVs and cross lien with additional collateral and or investment grade securities. This gives you an edge in the market place to get deals done. In addition, we have our own settlement attorney that draws your fee from closing and wires your fee directly to you. We do this as a team but we cant have everyone participating in everything, that just gets to muddy.
Q. What type of rates? A. This program is nothing like conventional lending, there is no matrix that will help fit a borrower in a box. The rate really depend on the borrower's profile which is derived from the CIS form in the downloads section. Rates start at 1.5% interest only to 5.5% for the 10 year fixed product.
Q. Is there a yield spread or would we need to charge the client? A. No YSP, all rates are par
Q. What are your closing costs? A. Costs are our fee (.5% to 1% ) plus the originators fee which will depend on the borrower's tolerance for fees. Plus the standard closing costs.
Q. What are the turn times ? A. Some of the borrowers are very complex, if you have a straight simple borrower with documented income, and w-2'd etc. that's easy, 30 to 45 days would be on the high side. if you have the self employed borrower that has 10 or 15 different corporate filings, we would need to take the time to find the cash flow from the various businesses, this would take more like 60 days. Also allot depends on the delay caused by the borrower or his staff in getting us additional info that is needed.
Q. Are there any up front fees ? A. Never
Q. What can I charge the client ? A. Borrowers are usually ok with 1-2% from your side plus our fee, more then that may be excessive, but is up to the borrower what they will pay on the deal.
Q. Loan sizes, min and max ? A. We don't have a max. We would like to see minimum loans of 1.5 million and up. We will review smaller deals if they are clean.
Q. Issuing an LOI ? A. We don't use the LOI any more, we have bypassed that by just getting on the phone with the borrower. We where spending to much time writing letters and not getting deals submitted. The process we have now is much tighter and benefits all of us.
Q. Do you order the appraisal? Or do you have an approved appraisal list? A. We do order the appraisal on loans over 2 million it may be required to order two appraisals. we will use your existing appraisal to submit, if you have not ordered the appraisal, don't, save the client money and we will get it done.
Q. What is the process ? A. It Breaks down like this, we receive dozens of the CIS forms at a time, we will run through and review the form. If the borrower looks good, we will put the form in a Que to set up a call, we will ask that you do the intro to a manager here, and send the remaining docs to submit. From there we will do our interview, prepare the borrower profile, stress test the loan,setup the KYC, repackage the file for underwriting, and set up the disclosure to lock in your fee. This can be done in less then an hour if we have the documents requested and full participation.
Q. Can I be on with my borrower for all calls? A. Not being a conventional loan, we have a process that is a bit foreign for most conventional brokers. The acronym KYC, or "Know Your Client" is the most important process in the transaction. Getting to understand the borrower and his finances is also critical to getting the borrower a loan. We have found it is very distracting to the process to have people come on the phone and break the cycle or process with conventional questions, also it is important that we have a one on one with the borrower and get a dialog for compliance reasons.
Q. How does the Broker get paid ? A. Your fee is draw from escrow by our escrow attorney and wired to you directly, you are not 1099'd.
Q. How does the Broker get updates ? A. We have several assistants that only work on emailed scenarios and updates. For Scenarios email privateequity@harbourequitypartners.com, for updates on the file notes that are in process email brokerupdate@harbourequitypartners.com
Q. How does the Broker get setup ? A. You may review affiliate page and submit the agreement and disclosure that is found on the download section of the this site. Email us with any questions.
FYI, if you have been in conventional lending for a year or 20 years, that experience may hinder you with this program. Our experience is that brokers think like brokers, not like bankers. In reviewing try to keep yourself from saying, " i never heard of that" we can assure you that you never have. Private banking is not offered to the broker community for a reason, and if you follow the direction of the staff here you will enhance your business many times over but, as a consultant.
For updates on files ONLY you would email BrokerUpdate@HarbourEquityPartners.com
For scenarios and inquires you would email the CIS form to PrivateEquity@HarbourEquityPartners.com
Still have questions ? Let us know
For more information on the consulting opportunity please feel free to contact us at PrivateEquity@HarbourEquityPartners.com
About Us | ©2009 Harbour Equity Partners