For Borrowers
Got questions? Start here with answers to frequently asked questions for borrowers. If you don’t find what you’re looking for here, feel free to contact us.
Like banks, Enact Partners lends funds for real estate investments. Unlike banks, we are not regulated by the Federal Reserve, so our process tends to be much easier and faster, with less red tape.
Our funds come from main street investors, not Wall Street. This means our rates are not affected by the Fed’s interest rate hikes, and we do not shut down due to macroeconomic trends, like banks and Wall Street-backed institutional private lenders sometimes do. For example, during the height of the COVID pandemic, when many banks stopped lending (in some cases right in the middle of construction projects), Enact Partners continued lending.
You should seek a loan through Enact Partners when speed, ease of closing, flexibility, creativity, and access to decision makers are important to you.
Our interest rates and associated fees are higher. We are easier, faster, and more flexible than banks, which costs a premium. However, for a short-term loan (the only kind we do) the overall cost is generally not that much different than a longer-term loan through a bank.
We do short-term loans for land, horizontal construction, vertical construction, acquisition, bridge, and business purposes. This typically includes single-family land, single-family residences, multi-family land, multi-family residences, commercial land, office, retail, industrial, hospitality, short-term vacation rentals, and agricultural land.
Yes. We lend in first trust deed position on real estate used for investment purposes only (borrowers cannot live in the property). We do not do consumer loans.
Most of our loans range in size from $500,000 to $10,000,000.
Total Project Cost is an important component in the Loan-To-Cost (LTC) ratio metric used by commercial real estate lenders to help determine how much money they should lend to a borrower for a real estate project. It’s one of the main factors Enact Partners uses to size loans.
Borrowers need to know about LTC, how it’s calculated, and the factors involved because it directly affects the amount of money they can borrow vs. how much of their own cash they will need to bring in to secure a loan.
LTC is simply the “Loan Amount” divided by the “Total Project Cost,” expressed as a percentage, such as 75%. For example, if the total cost to purchase an apartment building is $2,000,000 and a lender is willing to lend up to 75% LTC, the loan amount will be $1,500,000. The borrower must bring in $500,000 cash to complete the purchase. (For a more in-depth look at LTC and how it’s calculated, read our blog, “Got Skin In The Game? How Enact Partners Uses Loan-To-Cost (LTC) Ratio To Help Size Loans.”)
Essentially, Total Project Cost includes all project costs previously incurred by the borrower and all project costs that will be incurred by the borrower now or in the future. Some costs that do not add value to the property are not included, while others may or may not be included depending on the circumstances. (For a more detailed look at what is and is not included in Total Project Cost, visit here.)
We do business primarily in the western United States. This includes the following states: California, Oregon, Washington, Wyoming, Idaho, Montana, Nevada, Arizona, Utah, Colorado, New Mexico, and Texas.
To begin, you can call us at (760) 516-7776 or use our loan request form, which contains a comprehensive list of the information we need to get started.
Here’s a quick look at some of information we are looking for. We need . . .
- information about the property such as the address, parcel number, type, and purchase price.
- to know the loan type you are requesting, amount, length of loan, and when it needs to close.
- to know the property’s current mortgage situation (if any) and get a description of the property, it’s use, your plans for it, and total expected cost of your project.
Enact Partners can move and close as quickly as the borrower provides the needed paperwork and the appraiser completes the assessment. Generally, we see the process take from 7 to 45 days. If an appraisal is needed, the appraisal timeline often will dictate the closing date.
Yes, we often work with brokers or other lenders seeking speed, ease of closing, flexibility, creativity, and ease of access to decision makers.
As a 506(c), Regulation D, Investment Fund, the EP Guardian Fund is regulated under the California Finance Law Licensing which has oversight by the Department of Financial Protection and Innovation. The Fund engages a third-party accounting firm to conduct an annual audit of its financial statements. The Fund’s audit findings are available to Fund investors upon request.
