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Private money (or hard money) is a commonly used term in the banking and finance industries.  As the name implies, private money lending is the process of using funds from private investors (such as individuals, investment groups or companies) to make loans.  While most people go to a bank for loans on real estate, many people turn to private money lenders to secure real estate loans because private money lenders have fewer loan conditions and have much less “red tape” to deal with. Private money lenders are frequently an alternative to traditional lenders when a borrower does not qualify for a loan due to the restrictive underwriting conditions of traditional lenders.

Yes, Val-Chris Investments, Inc. is licensed by the California Department of Real Estate (DRE #01002882) and is also licensed by the Nationwide Mortgage Licensing System (NMLS #243299) and the Department of Financial Protection and Innovation (formerly, Department of Business Oversight) as a California Finance Lender (DFPI #603 5063).  If you have questions about any broker, you can look them up on the California Department of Real Estate website.

Val-Chris Investments, Inc. has been in the private money lending business since 1975 and is doing the same thing today it started more than 40 years ago.  We originate primarily residential loans but we also originate a considerable number of commercial and industrial loans as well.  We make loans throughout California that we receive from borrowers and brokers (many of whom are repeat customers) and, in turn, provide many investors with wonderful investment opportunities in those trust deeds secured by California real estate.  We also service loans for many of our borrowers which is the process of collecting the payments and sending loan statements to the borrower which contains key loan information as well as tax and regulatory information. 

In order to start a loan submission, you need to send us a completed loan application, a borrower’s authorization, a loan purpose letter and an appraisal or estimate of the property’s value.  We consider a variety of factors during the loan underwriting process, but the important issues are your ability to pay the loan back, the equity in the property, the value of property and the loan purpose. Give us a call or send us an email to find out more information. 

We do a variety of transactions but generally we provide loans for purchases, refinances, and cash-out transactions.  Currently our loans are for business purposes only.

Our interest rates vary depending on the specifics of each deal and so it is not practical for us to quote rates here.  Private money lender interest rates are generally higher than traditional bank rates. If we know more about your unique situation, we are able to tell you what our rates will be (or a range of rates) for your loan.  We invite you to give us a call or send us an inquiry and usually after a few minutes on the telephone, we can give you a range of rates for your unique situation.

Generally speaking, we operate similar to a bank except that we move much faster and have a lot less “red tape”.  We usually can close a loan in 5 to 14 business days and you will be paid at closing.  Since we originate the loans, we only have to satisfy our own loan underwriting guidelines and not those of any third parties.  This reduces the amount of time and paperwork to conclude a loan.  We also service most of our loans and so each month, you make your payment to us and we send you a monthly statement. At the end of the year, you will receive the necessary tax-related forms from us to provide to your accountant or financial adviser.

No, not at all. In many cases, typical private money borrowers are self-employed people, contractors, corporations, LLCs (limited liability companies), trusts as well as a variety of other types of people including many entrepreneurs who just do not qualify under the more restrictive guidelines of traditional lenders.  Many borrowers have developed a true preference to use private money lenders for their loan needs because private money lenders can originate and process loans faster, require less documentation, and are open to using alternative forms of collateral than traditional lenders.

As a direct lender, we can fund loans using our own guidelines and underwriting standards which simplifies the process and makes it very efficient.  We are very seasoned and experience lenders and this allows us to make the experience easy and simple for you.  We have funded thousands of loans well over $750 million to date.  We are honest, ethical, efficient and reliable and we are here to help you make the right decisions.  Our reputation is well-deserved for being one of the best private money lenders and the continued patronage of clients year-after-year, loan after loan, illustrates this point better than anything else.  Please try our service and you will not be disappointed.

We work with numerous brokers each and every day and make the process simple and streamlined so that you can be paid quickly at the close of escrow. 

We have a variety of loan programs, for business purposes only.  Contact us for a quick consultation on how our programs can help your clients.

Yes, we can frequently structure loans to accept other collateral.

We have been in the business selling Trust Deeds secured by California real property since 1975.  Honesty, reliability and integrity have been our hallmarks since we began the business and continues unabated to this day.  We are also investors personally in Trust Deeds and what better way to show your confidence in an investment than to invest in it yourself.  One key to successful trust deed investment is having a relationship or business partnership with an honest and ethical broker that conservatively underwrites the loans.  Val-Chris is just that broker and we invite you to see how we do.  Lastly, trust deeds are great investments with better than average rates of return but there are different classes of trust deeds and this is where a good broker is required to help you chart those waters.  We welcome the opportunity to serve you and hope you will call us with your questions and your concerns.

No, there is no minimum. It is very common for multiple people to “fractionalize” or split, a loan. This is a great way to get your feet wet and learn the process before diving in all at once. You can either bring in partners to help fund a loan or we can find others to partner up with you.

Notes are able to be purchased with many different accounts including, but not limited to: personal name, corporation, LLC, Trust (revocable or irrevocable), 401k, Solo 401k, Defined Benefit Plans, and many more.

Equity

First and foremost, we believe equity is the #1 priority when protecting your investment. This is why VCI remains steadfast with our internal equity limits and why we have been in the business for over 40 years. Our common sense underwriting and scrutiny of a property’s value are of the utmost importance when reviewing a deal for our investors.

Fire Insurance

We require fire insurance to be active on all loans, other than raw land. If we find that no insurance is in place during the underwriting process, we will make sure 6-12 months of insurance premiums are paid at the close of escrow.

Title Insurance

We verify that each loan is insured with an ALTA policy for 125% of the loan amount.

Our Experience

Our qualified staff has over 100 years of real estate experience. We have a consistent underwriting process which every loan goes through. We do our due diligence by background checking most borrowers, vetting appraisers, and keeping up with DRE and Federal guidelines to provide you with the best opportunities.

Foreclosure Process in California

• File Notice of Default.
• From the date the notice of default is recorded we are required to wait a minimum of 90 days before we
  can move forward with publication. This pertains to California
• After the 90 days has passed, we are able to move forward with publication.
• Publication is the procedure taken to have the county provide us with a Notice of Sale.
• The notice of sale will provide us the sale date along with the time the property will be auctioned.
• The soonest we can go to auction from the date we begin publication is 21 days.