About the KTM Lending Division
KTM Lending Division is a brokerage division for KTM Real Estate Investments and Holdings Inc. We work with over 100 lenders across the United States to fund your fix and flip, buy and holds projects, and commercial projects. Through our partners, we focus on investment residential and commercial across Texas and the United States
- Loan application
- Submit the form online and we will get back to you quickly. Our normal response time is within minutes or hours, not days.
- Project assessment
- After getting more details about the property, your renovation history, and your available equity, we assess the deal. We will then send you a term sheet with our proposed loan amount, rate and terms.
- Term sheet
- After you sign and return the term sheet, we will order a home appraisal for the property.
- Supporting documents
- Depending on your project and profile, we will ask you to submit some supporting documents. These may include copies of the sales contract, your corporate documents (if buying as an LLC or organization), and a construction budget and schedule. We also require builder’s risk insurance to protect you and us against any accidents at the job site.
- Draw schedule
- We will work with you to create a draw schedule, which determines when you will receive the draws or loan installments during the construction process.
- Loan closing and disbursement
- We will help you choose a settlement company and get all necessary documents to closing. At closing, you will receive your first loan payment which you will use to buy or refinance your property and get started on your renovations.
- At the designated draw schedule milestones, we will inspect the property and you will receive your loan draw payments so you can continue and complete construction.
- Sell or refinance
- Sell or refinance your property within the loan term and pay back the loan with your proceeds. Then repeat the process on your next deal!
- What is Hard Money Loan?
- A hard money loan is a short-term, interest-only loan that is secured by the value of the property rather than the borrower. Real estate investors and developers commonly use these types of loans to fund their projects because they are easier and faster to obtain than traditional bank loans.
- What do the terms "Loan to Value" (LTV) and "After Renovation Value" (ARV) mean?
- Loan to value is the amount of money borrowed compared to the cost, or value, of the property. After renovation value is an estimated value of a property after renovations. Our Investors will typically lend up to 70% ARV for a project, depending on the property and the borrower.
- How important is my credit score?
- Our prefer our borrowers have a minimum credit score of 650. However, since hard money lenders loan money based primarily on the value of the property, we can be flexible during the approval process. We do consider borrower credit history and experience, but our loan programs are flexible enough to work with all borrowers who have a decent deal and borrower profile.
- What documents do I need to get started?
- Each deal is different and but we generally require a personal financial statement and property information to get started. From there, we will work with each borrower or company to put together a solution that best fits your project and situation.
- What type of projects/properties do we finance?
- Single Family Resident (non-owner occupied)
- 2-4 Units Residence
- Commercial Properties
- Light Industrial