F.A.Q
Why use LoanSum?
What is a “Hard Money” Loan?
What is the maximum loan LoanSum will provide?
What does LoanSum require for account approval?
What does LoanSum require for loan approval?
Will LoanSum loan me the money for the repair costs in addition to the funds needed to purchase the property?
What is the ARV?
What is the maximum Loan to Value (LTV) ratio?
How much does LoanSum charge for a rehab loan?
What is the duration of a loan from LoanSum?
Can I extend my loan after the initial 4-month term is up?
What types of properties will LoanSum fund?
How and when are the construction funds released?
Can I take title into my LLC or corporation name?
How long does it take for a borrower to create an account and what is the typical time frame for closing a loan with LoanSum?
In what geographic areas will LoanSum provide funding?
Who can I use for builders risk and general liability insurance coverage on LoanSum loans?
Will LoanSum loan on properties that are occupied at the time of closing?
Do you charge prepayment penalties?
Do I need to have the property under contract before submitting a loan request?


Why use LoanSum?

• LoanSum funds 100% of the purchase, construction and loan fees. Use our money not yours!
• LoanSum closes loans fast! You will not miss those hot deals because of funding.
• Experience. LoanSum’s management team has over 30 combined years of lending and rehab real estate experience with over 1500 real estate transactions completed to date. We are committed to providing you the support you need to complete a profitable transaction.

What is a “Hard Money” Loan?
Hard Money is a term that has been used to describe a loan made on the raw equity of a particular property. Instead of lending on the lower of the appraised value or selling price, Hard Money Lenders lend a percentage of the “After Repaired Value” or ARV.

What is the maximum loan LoanSum will provide?
LoanSum does not have a minimum or maximum loan amount.

What does LoanSum require for account approval?
LoanSum loans are based on the investment property value, your exit strategy and your ability to pay the monthly interest payment. You will be required to provide us with the following:

• Submitted online account application

What does LoanSum require for loan approval?

• Submitted online loan request
• Signed contract
• Lockbox Information
• Construction/Estimates if any (fax to LoanSum)

Will LoanSum loan me the money for the repair costs in addition to the funds needed to purchase the property? 
Yes LoanSum will loan you the money to purchase the investment property including repair costs and loan fees. LoanSum will only loan up to 70% of the ARV (After Repair Value).

What is the ARV?
The ARV is an acronym for After Repair Value. This describes the value of a property once the proposed repairs have been completed. Appraisers do a “Subject to” appraisal based on the repair estimate of a property to base the After Repair Value.

What is the maximum Loan to Value (LTV) ratio?
The maximum Loan-to-Value (LTV) that LoanSum will loan is up to 70% LTV and it is based on the after-repaired-value (ARV) of the property. For example, if a property will be worth $150,000 after it has been repaired, the maximum loan LoanSum will provide is $105,000. This amount includes the purchase price, repair costs and loan fees.

How much does LoanSum charge for a rehab loan?
LoanSum offers loans to borrowers based on size of loan and the risk associated with the transaction. Typical origination charges range from 4 to 6 points with a $2000.00 minimum. If construction funds are requested an additional fee of 1 to 2 points, with a $500.00 minimum, will be accessed for administrative costs. Interest charges range from 1% to 1 1/2% of amount borrowed per month regardless of term.

What is the duration of a loan from LoanSum?
LoanSum loans typically have a 120-day term, approximately 4-months, which may be renewed for an additional 4-month period by giving a 30-day written notice and receiving approval from LoanSum.

Can I extend my loan after the initial 4-month term is up?
Yes. You must request in writing that your loan be renewed and you must pay for a new title search (generally $350). Upon receipt of your written notice to renew and your title search fee, LoanSum, at its sole discretion will allow your loan to be renewed for an additional 4-month term. A minimum fee of 4% or $2000.00 whichever is greater will be charged on all renewals. Renewal fee will be added to your loan and becomes payable when you sell the property.

What types of properties will LoanSum fund?
LoanSum will fund any residential and commercial project including single families, multi family, duplexes, and apartment complexes are all eligible for funding. 

How and when are the construction funds released?
The investor submits a draw request through our website. A LoanSum representative who will approve the draw request will then inspect the property. Upon a positive inspection, a deposit is made directly into your checking account via an electronic funds transfer. Therefore, there is no delay in receiving repair funds from LoanSum. You will be required to submit signed lien releases from all individuals providing labor or materials on the property before any repair funds are released. Please note that if any permits are required on your property, LoanSum will require copies of final inspection certificates to be faxed to our office prior to receiving a final construction draw for that certain construction category. 

Can I take title into my LLC or corporation name?
Yes, we allow borrowers to take title in their LLC or corporate name. LoanSum requires that all members, member’s spouses and/or officers/managers of a LLC or corporation sign all closing documents. Taking title in a corporate name still requires a personal guarantee from all of the members, member’s spouses and/or officers/managers of the LLC or corporation. 

How long does it take for a borrower to create an account and what is the typical time frame for closing a loan with LoanSum?
LoanSum can approve your account within one business day, which will give you access to the members section of the website. Once a loan request has been submitted to LoanSum and assuming all required documents have been provided, your loan could be processed within 7 to 14 business days.

In what geographic areas will LoanSum provide funding?
LoanSum loans are available in: Saint Louis City, St Louis County, St Charles County and Jefferson County

Who can I use for builders risk and general liability insurance coverage on LoanSum loans?
You may purchase your insurance policy from an insurance company and agent licensed in the State of Missouri. Before your closing date LoanSum must receive your Declaration Page with the following lenders mortgagee’s clause: 

LoanSum, LLC ISAOA
11821 Adie Road
St Louis, MO 63043-3303

Will LoanSum loan on properties that are occupied at the time of closing?
Due to insurance restrictions and issues with construction work around tenants, LoanSum will not fund properties that are occupied at the time of purchase.

Do you charge prepayment penalties?
No. Your loan may be paid at any time with no prepayment penalty. The faster you rehab a property and or refinance it the more profit you make.

Do I need to have the property under contract before submitting a loan request?
Yes you will need to have a signed contract before submitting the online loan request. Note: You will need to create an account before you can submit loan requests and funding letter requests.