Liquidity program offerings vary depending on the nature of the project. While the majority of the loans are used for single family residential renovation and resale ("flips"), we will also entertain Buy and Hold, New construction, multi-family and commercial. Terms will vary based on the project itself.
Loan Consideration/Requirements
Liquidity will consider transactions submitted with the following information:
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Property address
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Budget/Cost estimates for renovations (What is the "plan" for the home?)
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Acquisition Price/Copy of the Sales Contract and /or Assignment
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Loan Amount you are requesting
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Estimate Closing Date and Settlement Agent contact information
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Timeframe for use of funds (6 months is standard, but we want to know realistically how long you need.)
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Final ARV (After Renovated Value)
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Comparables used to determine ARV
These items can be submitted by email.
Loan Process
Provided the information is received, we can typically provide you an answer within hours. We do not require an appraisal; however, a drive by will be performed. If we are not interested, we will give you a "quick No" so as not to hold you up unnecessarily.
Terms
Terms vary on each loan depending on the loan dynamics. Loans are 6 month, interest only with monthly payments required. Two extensions of 6 months each are considered if your payment history is satisfactory:
1st Extension: A one point (1%) extension fee is assessed. This fee is collected at time of payoff.
2nd Extension: A three point (3%) extension fee is assessed along with a significant interest rate escalation. The fee is collected at time of payoff. Rate escalation begins at the time of the 2nd extension and will increase monthly payments accordingly.
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Loans can only be made to corporations, LLC's or Trusts; not individuals. They are commercial loans.
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The Tax ID number must be provided so that tax forms can be prepared and sent to you at year-end.
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Verification of your credit score is required.
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We would strongly prefer the use of our Partners for settlement agents (See Partners). While others will be considered, be aware that there are some that absolutely will not be used.
Funding
We can fund quickly. Typically, within 24 hours of completed title.
Geography
While there is no prescribed geographic limitation, the preferred lending area is in Virginia. Because routine inspections are performed monthly, it is a logistical protocol.
Deal Size
Again, there is no limit set forth. We've made loans from as small at $25,000, but as great as $3,000,000. Funds are available based on capital balancing and liquidity. Liquidity, LLC has never withdrawn from the marketplace; even during the recent COVID concerns.