FAQ

How do I get pre-qualified for a hard money loan with Socotra Capital?

It’s really simple. You can start by either filling out the Short or Long Form Application or you can contact a loan specialist at (916) 617–2220. We will go over the process with you and answer any of your questions.

What are your terms?

Socotra Capital funds a variety of real estate loans, such as:

  • Fix and Flip Loans
  • REO Short Sale Transactions
  • Residential Rehab Loans
  • Commercial Rehab Loans
  • Bridge Loans
  • Ground Up Construction Loans

Costs and fees vary depending on the program. Socotra Capital lends to individuals and entities including trusts, corporations, LLCs, partnerships and self-directed IRA accounts.

What if I have bad credit? Can I still get a loan?

Yes! Our hard money underwriting guidelines focus primarily on equity not borrower credit. We have accepted borrowers with low credit scores, prior bankruptcies, and foreclosures. We also make loans to foreign nationals and entities with no credit history. If a bank turns you down, call Socotra Capital. We are ready to respond quickly and efficiently to meet your needs.

Can I live in the house during the course of the loan?

No. Socotra Capital lends exclusively on investment properties. A possible exception exists if the use of the funds is for a well-documented business purpose. Please contact Socotra Capital at (916) 617-2220 for further inquiry.

What is a hard money loan?

A hard money loan is an equity-based loan used as a bridge to fund the borrower’s immediate financial needs. Generally it is a short-term solution (six months to two years) for clients who need fast money. Most hard money loans are used for projects lasting from a few months to a few years. It is used for all types of real-estate secured financing such as commercial, retail, industrials, raw land, construction, rehab, single family residence, and multi-family homes.

Where do you loan?

Socotra Capital provides loans throughout California.

Do I need to get an appraisal?

Generally an appraisal is part of Socotra Capital’s underwriting and due diligence process and may be necessary depending on the LTV (loan-to-value) ratio and the uniqueness of the property. If an appraisal has already been completed providing a copy for our review may fulfill the need and save time.

How does a hard money loan work?

Traditional bank loans are dependent on many factors including the borrower’s income, credit, net worth, etc. They require minimum credit scores and can take months to close. A hard money loan relies on real estate equity. There are no credit score requirements and loan decisions happen quickly. Although higher risk means a higher interest rate, hard money loans can be beneficial and are often the only way to take advantage of investment opportunities.

How long does the loan process take from pre-qualification to funding?

We usually take under two weeks to close the deal; however, we are known as the “Kings of the five day close.”

Do you provide proof of funds letters?

If you need a proof of funds letter we can provide one after you have been approved. Please note that approval or proof of funds is not a guarantee or commitment to fund a loan or to provide any specific amount to fund a loan.

Which types of properties does Socotra Capital finance?

Socotra Capital has the flexibility to lend on any type of California real estate deal. While we typically finance commercial, industrial, or residential deals, there is nothing we won’t listen to.

Can I get a loan on an investment property I already own?

Yes. As long as it is not owner-occupied.

How many loans can I do at one time?

This is determined on a case-by-case basis. Most borrowers should expect to do an initial loan to establish a relationship.

What States do you fund in?

Socotra Capital provides hard money loans throughout California and Nevada.

What are your rates?

There is no formal rate matrix since each loan scenario is unique. Rates vary based on a number of factors most notably the loan-to-value, property type, property location, and term.