This startup provides private money loans specifically for residential real estate investments, facilitating the buying and selling of homes. By offering quick access to capital, it addresses the need for flexible financing options in a competitive housing market.
Funding
$11.2M raised to dateRaised to date based on public sources. This may differ from the amount the company actually raised and is based only on what is publicly available on the internet.
Founders
Product
Problem
Residential real estate investors often face challenges in securing timely and flexible financing for property acquisitions and renovations. Traditional lenders may have lengthy approval processes and stringent requirements, hindering investors' ability to capitalize on opportunities in a competitive market. Wholesalers, flippers, and landlords require quick access to capital to close deals, rehab properties, and refinance investments efficiently.
Solution
Oakwood Lending provides private money loans tailored to experienced residential real estate investors, offering a streamlined alternative to conventional financing. They specialize in funding for wholesalers needing transactional funding, flippers undertaking fix-and-flip projects, and landlord investors employing the BRRR (buy, rehab, rent, refinance) strategy. Oakwood Lending focuses on relationship-based lending, assisting clients in evaluating deals and offering special-priced listing services through their residential brokerage arm. Their loans are secured by a 1st position Deed of Trust, ensuring a secure investment for the lender while providing borrowers with the necessary capital to execute their real estate strategies.
Target Audience
The primary target audience includes experienced residential real estate investors in North Carolina, specifically wholesalers, flippers, and landlord investors seeking short-term financing for property acquisition, renovation, and refinancing. Borrowers must operate as an entity, not as an individual.
Features
- Loan amounts up to $350,000 with a maximum After Repair Value (ARV) of $500,000
- Financing up to 70% Loan-to-Value (LTV)
- Interest rates starting as low as 12% with a minimum of 2 points paid at origination
- Maximum loan term of 12 months, with potential interest rate increases after 6 months
- Fast closing process with property valuation based on borrower comps and internal analysis, often without requiring a formal appraisal
- Relationship-based approach with assistance in deal evaluation and analysis
- Special-priced listing services available through their residential brokerage arm
- Transactional funding options for "double closes"