Frequently Asked Questions
Borrower FAQ:
Where do we lend?
Florida statewide on investment (non-owner-occupied) properties. In some cases, we do evaluate lending in other states. If you have a special scenario outside FL, feel free to discuss with our team.
Do you lend on homesteads?
No. We fund commercial-purpose investment loans only (non-owner-occupied). Homesteads/primary residences are not eligible.
Why do I need a hard money loan?
Speed and flexibility. Asset-based underwriting lets investors move on time-sensitive deals, value add rehabs, and situations banks won’t touch due to documentation or timing.
Are there upfront fees?
We don’t charge application fees. At closing you’ll see normal third-party costs (title, insurance, valuation, escrow) and standard origination points, clear and disclosed.
What can I use the funds for?
Acquisitions, rehabs/fix-and-flip (with draws), bridge scenarios, and certain rental or investment purposes (you can later refi into DSCR if you plan to hold).
How long does it take to get approved and funded?
With a complete file and clear title, we can typically issue terms quickly and close within just a few days; final timing depends on valuation, title, and deal complexity.
How can I get a pre-approval letter?
Contact us with your deal details; we can provide a letter of pre-approval, and later a commitment once the file is approved.
Why is Lenders Factory different?
Local focus unlike national lenders – we are here and know the market. With asset-first underwriting, fast and transparent terms, and proactive / responsive communication from quote to close. You get certainty, speed, and results.
Investor FAQ:
What is mortgage investing? And is it safe?
You allocate capital into short-term, first-lien real-estate loans and earn interest while we service the note. All investments carry risk, but risk is mitigated by collateral (first lien), conservative LTV targets, and disciplined underwriting/servicing.
What is the minimum investment?
Typically, an investment can be as low as $100,000. Offering a variety of flexible investment options based on what you are comfortable with.
How long are the loans for?
Most notes run about 12–24 months, giving you reinvestment flexibility.
Do I get to decide who I loan to?
Yes. Investors typically review a loan package and then can decide whether to invest or not in specific deals.
What is the return I can expect?
The typical return is 10% – 12% annual yield, typically paid monthly and net of a servicing fee. Actual returns may vary by deal and structure.
Do I need a special license or certification to loan money?
For commercial-purpose (investment) mortgages, lenders/investors generally do not need a residential mortgage license.
Why is someone willing to pay these rates?
Borrowers pay a premium for speed, certainty, and flexibility—to win deals, complete renovations, bridge timing gaps, or secure funds when banks can’t meet the schedule/criteria.
Build Passive Income Backed by Real Estate
Tap into consistent, collateralized returns with a trusted Florida private lender. Enjoy transparent updates, straightforward terms, and dependable monthly cash flow—without the hassle of property ownership.