Question 1

Can I Use My Free and Clear Property to Fund Future Non-Owner Occupied Investments?

Accepted Answer

Yes, that's a great investment strategy.  You free and clear property may be used in two ways.  As a cross-collateral or for a cash-out refinance.  Make sure title is clean and there are no liens against the property.  Make sure you mention it when you contact us.

Question 2

How Does Breclaw Decide How Much to Lend?

Accepted Answer

Our decision is based on the property and the type of transaction.  For most transactions we will lend up to 90% of the purchase price, and 100% of rehab cost up to 65% of the after-repair appraised value.  You will need to supply licensed contractor bids as well as meet certain other requirements. Bring us the deal and let’s discuss it.  Here is an example, no guarentees on this example.  Every situation is different. 
 
The after repaired appraised value is $100K, your purchase price is $40K and it needs $25K in work.  That deal works.

Question 3

100% Financing?

Accepted Answer

Short answer, yes! Ask us for more details.

Question 4

Can I Use My IRA?

Accepted Answer

Wise question, by using a true self-directed IRA and making all legal payments from it and depositing all complying profits into it. You should seek legal and financial advice first. You must have a true self-directed IRA. There are many IRA administrators that offer such accounts. Then you buy the property in the name of the IRA, furnish the earnest money from the IRA, apply for the loan in the name of the IRA, pay all costs from the IRA, and put all the profit back into the IRA. This is a topic that requires much more detail than we have room for here. Please contact your legal or financial advisor for the details. Also search online for self-directed IRA custodians to learn more about your options.
 
Great idea!!!

Question 5

I want to Borrow Money on Based on An Investment Property I Own.  Is that Possible?

Accepted Answer

Yes! We love flippers! If the deal makes sense, we will help you get it done. Speak to a loan officer for more details.

Question 6

What are Your Rates and Loan Origination Fees?

Accepted Answer

Our loans are asset-based and our decisions are logic-based. That means we base our decisions about funding and rates on the perceived risk associated with the property. If you have a property under contract, submit it. Our rates are competitive in the private money market but we save our best rates for our best clients. Get started today to become one of those repeat, best clients! Get a property under contract and submit it!

Question 7

I Have Bad Credit, does that Matter?"

Accepted Answer

No. Our loans are asset-based. We base our loans on the value of the asset, not on your credit score, income, or the size of your debts. However, a high credit score can potentially get you our better rates.

We regularly fund clients whose credit score is below 500.

Question 8

How Long Does it Take to Close?

Accepted Answer

Our system is designed to close in three weeks. Though have done  it faster. The key factor is the amount of time it takes you and your team to supply all the supporting documentation. We can do our part in 3-4 days. If you are putting a property under contract, we suggest 30 days with our goal to close it sooner. Remember: if time to close is a factor, you probably have competition. Which can translate to a good deal.

Question 9

I'm a Sole Proprietor can you Lend to Me?

Accepted Answer

Yes, if you create an LLC, a corporation, an IRA, or a trust before the close of escrow.  We ONLY lend to legal entities.

Question 10

What is a 30-year refinance?

Accepted Answer

A 30-year refinance is a type of mortgage refinance in which a borrower replaces their existing mortgage with a new mortgage that has a term of 30 years. This means that the borrower will make payments on the new mortgage for a period of 30 years.
The primary reason to refinance into a 30-year mortgage is to potentially lower the borrower's monthly mortgage payments. This can be achieved by either obtaining a lower interest rate or by extending the loan term. However, it's important to note that extending the loan term can result in paying more interest over the life of the loan, even if the monthly payments are lower.
30-year refinance mortgages are a popular option for homeowners who plan to stay in their home for an extended period of time and want to lower their monthly mortgage payments. However, it's important to carefully consider the costs and benefits of refinancing before making a decision. It's recommended to work with a trusted mortgage broker or financial advisor to help you navigate the process and find the best refinance option for your individual needs.

Question 11

How much equity can I refinance?

Accepted Answer

The amount of equity that you can refinance will depend on the lender's policies and underwriting criteria, as well as the current market value of your home and the outstanding balance on your mortgage.
In general, most lenders will allow you to refinance up to 80% of your home's current appraised value, minus any outstanding mortgage balance. For example, if your home is currently worth $300,000 and you owe $200,000 on your mortgage, you may be able to refinance up to $160,000 (80% of $300,000 minus $200,000).
However, it's important to note that lenders may have different policies regarding how much equity they are willing to refinance, and some may require a higher equity percentage. Additionally, if you have a high credit score and a low debt-to-income ratio, you may be able to refinance more equity than someone with a lower credit score or higher debt-to-income ratio.
It's recommended to speak with multiple lenders to determine how much equity you may be able to refinance based on your individual circumstances. A mortgage broker or financial advisor can also help you navigate the process and find the best refinance option for your needs.

Question 12

How do I get a mortgage refinance?

Accepted Answer

To get a mortgage refinance, you will generally need to follow these steps:

Determine if refinancing is the right choice for you: Consider your current financial situation and goals to determine if refinancing is the right option. This may involve analyzing your current interest rate, monthly payments, and the potential costs and benefits of refinancing.
Check your credit score: Your credit score can affect your ability to refinance and the interest rate you may qualify for. Make sure to check your credit report and address any errors or issues before applying for a refinance.
Shop around for lenders: Compare rates and terms from multiple lenders to find the best deal for you. You can use online resources, mortgage brokers, or reach out to individual lenders directly.
Gather documentation: Lenders will typically require documentation such as income verification, tax returns, bank statements, and details about your current mortgage. Make sure to have all necessary documentation ready to provide to your lender.
Apply for the refinance: Once you have chosen a lender, you will need to complete an application and provide all necessary documentation. The lender will then review your application and determine if you are eligible for a refinance.
Close on the new loan: If your application is approved, you will need to sign the necessary documents and pay any closing costs or fees associated with the refinance. Your new lender will then pay off your existing mortgage, and your new loan will go into effect.

It's important to note that the process of getting a mortgage refinance can vary depending on the lender and individual circumstances. Working with a trusted mortgage broker or financial advisor can help you navigate the process and find the best refinance option for your needs.

Question 13

Can I refinance my mortgage?

Accepted Answer

Yes, you can refinance your mortgage in Illinois. Refinancing your mortgage involves obtaining a new mortgage with new terms and using the proceeds to pay off your existing mortgage. This can potentially save you money by lowering your interest rate, reducing your monthly payments, or changing the term of your loan.
To refinance your mortgage in Illinois, you will need to meet certain eligibility requirements, including having a good credit score, a stable income, and equity in your home. You will also need to go through the application and approval process, which may include a credit check, an appraisal of your home, and other underwriting requirements.
It's important to carefully consider the potential benefits and costs of refinancing your mortgage before making a decision. While refinancing can save you money in the long run, it can also come with upfront costs such as closing fees and origination fees. Additionally, refinancing may not be the best option for everyone, depending on your individual financial situation and goals.
If you're considering refinancing your mortgage in Illinois, it's a good idea to consult with a trusted lender or financial advisor to understand the potential costs and benefits and determine if it's the right choice for you.

Question 14

What if my property was sold for taxes?

Accepted Answer

We are the ONLY lender dedicated to saving business owners and investors from their property being sold.

Question 15

Can I get a loan for a 6 unit property in Chicago if it needs rehab?

Accepted Answer

Yes, but it typically requires a different type of financing than residential loans. We treat 5+ unit properties as commercial assets, which means the structure of the loan becomes just as important as the deal itself.

Question 16

Can I access equity from my rental property without refinancing my current mortgage?

Accepted Answer

Yes. Many investors are now using DSCR second mortgages to access equity without disturbing their existing low-interest first mortgage.
This has become increasingly popular among investors who:
refinanced during low-rate periods
have strong property equity
and want capital for new investments or business purposes
Instead of replacing the original mortgage, a second-position DSCR loan allows investors to leverage available equity while keeping their existing financing intact.
For many investors, preserving a low first mortgage rate is more valuable than refinancing the entire property in today’s market.

Question 17

What is a release clause in a blanket loan?

Accepted Answer

A release clause allows specific properties to be removed from a blanket loan under agreed-upon conditions without paying off the entire loan.
This becomes important for investors financing multiple properties under one structure because it creates future flexibility for:
property sales
refinancing individual assets
equity repositioning
or portfolio restructuring
Without a release clause, investors may discover later that all properties remain tied together, making future transactions more complicated than expected.
For experienced investors, loan flexibility often becomes just as important as the interest rate itself.

Breclaw Capital

Capital for Investors Who Expect More Than a Loan

Built for Both New and Experienced Real Estate Investors who Know the Right Financing Partner can be Just as Valuable as the Right Property.
Trusted by Investors. Valued by the Realtors Who Represent Them.

FAQ

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