Frequently Asked Questions

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Where does Equitymax lend?

EquityMax lends throughout the state of Florida.  We offer loans in all 67 counties.

What types of real property does EquityMax lend on?

EquityMax lends on any form of residential property, including single family homes, 1-4 multi-unit properties, condominiums & townhomes, and even small apartment complexes (20 units or less).  We also lend on commercial property and industrial warehouses.

How quickly can you fund your loans?

If a borrower approaches us with an updated title commitment and municipal lien/permit search, EquityMax can fund in 24-48 hours.  If a lien search and title commitment have not been ordered, this often takes the municipality and underwriter about 5 working days to complete, at which point we can close within 2 days of receiving these documents.

What is your due diligence and underwriting process, and how long does it take?

Our due diligence entails reviewing a borrower’s three-score credit report and performing a BPO.  We do not require review of any financial statements (i.e. tax returns, bank statements, etc..), nor do we require a formal appraisal.  Depending on whether we are in receipt of the lien search and/or title commitment, underwriting can take anywhere from 1-5 days.

What are your credit requirements?

EquityMax does not have a minimum credit requirement.  We can offer all borrowers a loan, regardless of credit score or past/current credit history.

Once I am prequalified, how quickly can I obtain a Proof of Funds letter?

EquityMax can send a borrower a Proof of Funds within 5 minutes of receipt of an acceptable, three-score credit report.  If a borrower does not have a recent report, he/she can request that Equitymax pull it.  For instructions, please click here.

Are rates negotiable and/or flexible?

EquityMax welcomes the opportunity to be competitive with the loan terms of other lenders.  Feel free to bring us any competitor’s’ loan terms, and EquityMax will do our best to match or beat them!  To learn more about our rates/terms, visit our Resources page.

Is there a prepayment penalty?

EquityMax does not charge a prepayment penalty, assuming that borrower’s make their monthly payments on-time.

Can EquityMax finance multiple properties simultaneously for borrowers?

Yes. EquityMax has multiple borrowers with several active loans in our portfolio.

I currently have a first mortgage, but my property has equity. Can I still obtain a loan from EquityMax?

EquityMax does not offer second position loans, however, we can still help.  EquityMax can offer you a sufficient loan, wherein the new principal balance will pay off your existing mortgage balance while providing you with the desired “cash out” you are seeking.

Do I need to hold properties in a business entity?

EquityMax does not require our borrowers to be a Corporation of LLC.  We can originate loans to individuals, LLCs, Corporations, Land Trusts, and Self-Directed IRAs.

Can I assume an existing EquityMax mortgage on a property?

Yes, any borrower is free to assume a mortgage currently held by one of our borrowers.

Does Equitymax require personal guarantees?

EquityMax does require personal guarantees.  The one exception is a loan made to a Self-Directed IRA, where by law, the loan must be a non-recourse loan.

Does EquityMax require appraisals?

EquityMax does not require appraisals as part of our due diligence.  If the property is local to the South Florida, Tri-County Area (Dade, Broward, Palm Beach), we will perform a basic walk-through inspection.  If the property is outside of this region, we will hire a local Realtor in the county where the subject property is located to perform a BPO a/k/a Broker’s Price Opinion.

What type of insurance does you require on your loans?

EquityMax requires insurance with Fire and Theft coverages only for a minimum period of 6 months.  We do NOT require windstorm, flood, liability, or builder’s risk coverages.

Do you find properties for borrowers?

EquityMax sends out anywhere from 50-100 properties a week to our subscribers.  To join, click here. If you don’t see a viable investment property on our lists, EquityMax can find you a property that fits your specifications.

How often does EquityMax send out properties for sale?

EquityMax sends out lists of properties for sale – complete with address, pictures, and pertinent details – at least 5x each week.  Overall, you can expect to receive anywhere from 50-100 listings for immediate purchase.

I am a Realtor and/or Loan Originator. What documents should I submit on behalf of my client?

In all cases, we will need a copy of the borrower’s three-score credit report as well as the executed contract for all purchase loans.  All Loan Originators must submit an LO and client-executed 1003 as well.

I am a Realtor and/or Loan Originator. How will I be compensated for bringing new deals?

All Loan Originators will be paid on the HUD per written agreement made with the client.  Realtors and other service professionals will be paid for services rendered (i.e. BPO, Inspection, Consulting) per written agreement made with the client and/or EquityMax.

Who services my mortgage?

EquityMax services all of our mortgages in house.  We do not outsource this task to a third-party.

Where does EquityMax get the funds to lend?

EquityMax prides itself in being a lender that only lends its own personal funds.  We do not carry any bank lines, debt facilities, or require outside investors to originate and fund our borrowers.

I have more questions? How can I get answers?

Feel free to call our office during normal working hours at (954) 267-9103.  Outside of normal working hours, you can contact us with any questions you may have.

I have a little of my own cash, but want to invest in real estate, what do I do?

There are many ways to profit in today’s market.  We encourage individuals to take on well-designed hard-money loans to leverage their available cash to purchase real estate.  You can also partner with seasoned real estate investors on joint ventures to achieve your real estate goals.

Do I need a property to start the process of obtaining a loan?

You do not need a property to begin.  The first step, whether or not an investor already has a property under contract, is to get prequalified.  In fact, we encourage our investors to prequalify prior to finding a property.  If a borrower is already prequalified prior to placing an offer, Equitymax can supply them a Proof of Funds letter to submit with their contract.  We find this proactive process maximizes the chances of a borrower having their offer approved by the Seller.  If you’d like to get prequalified, click here.

How do I analyze a property’s profit potential?

For a “fix and flip” investment, the simplest way is to calculate the costs of a project are to take the anticipated sales price and deduct all pertinent costs, including but not limited to: closing costs when purchasing, renovation costs, holding costs, and closing costs when selling.  For a “buy and hold” investment, we encourage our borrower’s to always perform a quantitative rental analysis to make sure that a property’s rental income can support all relevant costs, including but not limited to: vacancy allowance, property taxes, maintenance, property insurance, and mortgage payments.

How do I find properties to invest in?

There are multiple avenues in today’s market to find properties.  You can hire a local Realtor to source properties, organize mail campaigns, or simply drive around a particular area you’re interested in.  EquityMax also markets updated lists of properties for sale, ready for immediate purchase.  Click here to search now.

Do I need a realtor to find properties?

In some cases, you may benefit from a realtor with years of experience and/or a great knowledge of a particular area you are looking to invest in.  Additionally, we always encourage our clients to utilize all sources of knowledge (i.e. networking vents, joint ventures, etc…) to enhance their ability to find investment properties.

Have Any Other Questions?
Feel free to ask us, and we’ll get back to you with the answers ASAP