Sunwest Capital, Private Money Lending, Orange County, California, Commercial, Investments

1. Sunwest Capital Lending
YOUR SHORT TERM LENDING SOLUTION
PRIVATE MONEY LENDING PRESENTATION

2. • Nonconforming direct lender with over 100 years combined
experience.
• We have a proven track record of delivering performing safe
trust deeds to our investor community since 1975.
• Reliable top producing AEs/Ops providing strong
communica;on skills and work ethic.

3. QuesDon: What is Private Money Lending?
Answer: Equity based lending.
• Private money uses a high wealth individual that is interested
in making a be>er than bank return on his investment.
• Most banks are paying less than 1% on savings, CD’S, etc.
With private money an investor can make 8.5%‐13.00% by
funding a note for a borrower.

4. QuesDon: How does Private Money work?
Answer:
• With some basic informa;on we can get
you a quote for your client.
• This is ONLY a quote that is usually a
range and this quote could change upon
receipt of a complete package.
• Upon receipt of a complete package we
find an individual investor who likes the
loca;on and condi;on of the property
but most of all he likes the return he can
receive on the note.
• That individual investor funds the loan…
NOT an ins;tu;on.

5. QuesDon: How does Private Money look
at the credit package?
Answer: Unlike INSTITUTIONAL LENDERS,
PRIVATE MONEY has less restric;ve guidelines for:
• INCOME
• CREDIT
• FICO
• RESERVES
• SOURCE AND SEASONING
• CITIZEN STATUS
• USE OF FUNDS

6. QuesDon: How does private money determine
the LTV?
Answer: The rule of thumb is…
• Purchases 60‐65% LTV with 100% CLTV
• Cash Out refinances: 50‐55% with 90% CLTV
• Private money always looks at the collateral but loca;on
and condi;on are important too. A property in a nice
loca;on with excellent curb appeal is going to get a
higher LTV.

7. QuesDon: How does private money determine the
INTEREST RATE?
Answer: Collateral, condi;on, loca;on, LTV, and FICO
determine the interest rate along with investor appe;te.

8. QuesDon: What types of borrowers does
Private Money make loans to?
Answer:
• Corpora;ons, LLC’S, Partnerships, Investors, and Individuals.
• We will also loan on an owner occupied cash out refinance if the
cash out exceeds the payoff of the exis;ng liens and the cash out
is being used for business purposes.
• We will NOT loan on an owner occupied purchase or rate and
term refinance unless purchased or vested in a business en;ty.
Why??
• Because Private Money Lenders make loans for “Business
Purposes” NOT “Consumer Purposes” UNLESS it is a NOO
Consumer Purpose loan pulling cash out to pay off personal debt
• An owner occupied purchase and rate and term refinance are
considered “Consumer Purpose Loans” UNLESS in a business
en;ty.

9. QuesDon: What types of proper;es does
Private Money like to loan on?
Answer:
• SFRs, Condos, 1‐4 Units, 5+ Units • Older Retail Strip Centers
• Assisted Living Facili;es • Owner‐Occupied/Operated Facili;es
• Construc;on/Renova;on • Profitable Restaurants
• Day Care Center • REO Poriolio Acquisi;on
• Hotels/Motels • Salons/Spas
• Industrial Facili;es • Self‐Storage Facili;es
• Medical Offices • Shopping Centers
• Metal Buildings • Specialty Retail Stores
• Mixed‐Use (commercial with • Vacant Proper;es
residen;al) • Warehouse Condos
• Newer Flagged Hotels • Warehouses
• Office Buildings • Rehab or construc;on on projects that
• Office Condos are 50% or more complete

10. QuesDon: What types of proper;es does
Private Money NOT like to loan on?
Answer:
NO SINGLE USE PROPERTIES INCLUDING:
• Funeral Parlors
• Marinas
• Hospitals
• Laundromats
• Churches
• Dealerships
• Gas Sta;ons
• Unpermi>ed Units
• Auto Repair Shops

11. CORE PROGRAM:
• Our loan amounts range from $100,000 to $2,000,000
• Our loans are 10, 20, 30 or 40 year amor;zed or I/O
(ONLY Small Balance Commercial) due in 3 years.
• Our standard fee is 2 – 6 points.
• Our prepayment penalty ranges from 0 months to 1
year depending on the program (80% of 6 months
interest).

12. HIGH BALANCE COMMERCIAL PROGRAM:
• These loan amounts range from $2, 000,000 to
$20,000,000.
• These loans are 20 or 25 year amor;zed or I/O and
due in 5, 7 or 10 years.
• Our standard fee is 2‐ 5 points.
• Our prepayment penalty is variable (case by case).
• Debt Service Ra;o is 1.2 to 1.5

13. • We don’t require Income Doc.
• We don’t require FICO SCORES
• We don’t require Reserves.
• We don’t require Source or Seasoning.
• We don’t require borrower to be a US Ci;zen.
• We don’t require Appraisal Reviews.
• BPO OK if less than 50% LTV.

14. • Collateral (Security – The property securing the note.)
• Skin (Borrowers own Cash into the transac;on.)
• Story (The story that gave rise to the need for the loan.)
• Exit Strategy (A realis;c detail of how the loan will be
paid off at maturity.)
If one leg is missing the stool becomes less stable.

15. • Keep in mind a private money loan is a “BRIDGE”
loan or a “BAND AID” loan.
• Most borrowers take a private money loan
because they need to close FAST...FASTER than
ins;tu;onal lending.
• This is a short term loan…THREE years…and in
most cases this loan will pay off sooner.

16. The goal for the borrower ader three years is:
• They will have their credit reestablished.
• They can meet Fannie Mae, Freddie Mac income
requirements
• Their FICO scores will be be>er.
• Their divorce will be final.
• The probate will be completed.
• The property will be sold if a flip.
The BEST part is that the broker may get to refinance the
borrower in 3 years and get a SECOND loan!!!

17. Sunwest Capital Lending
“YOUR COMPANY FOR LIFE”
CALL US
(949)542-3158
Chris Stamos chris@sunwestcapital.com
Ron Rauch ron@sunwestcapital.com
Mary D‘Acierno mary@sunwestcapital.com