Questions about hard money lending or real estate investing?

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About WCP

Why should I choose WCP?

What is WCP’s mission?

Where does WCP lend?

What types of properties does WCP lend on?

What is WCP’s interest rate?

What is WCP’s loan term?

How much will WCP lend on a property?

What form of payments does WCP accept?

Does WCP have an in-house inspector?

How long has WCP been operating?

Are you a national or local lender?

Are you hiring?

Construction Draws

What is the process for construction draws?

How Hard Money Works

How do I get a Proof of Funds Letter?

How do I get a loan breakdown?

Do you lend on primary residences?

Do I need to use my own capital?

Can I purchase a property under my personal name?

Do you offer discounts for repeat borrowers?

Do you require a certain credit score?

Does WCP perform a credit check?

How do I start the process to get a hard money loan?

How fast can I get a commitment?

How fast can I get a construction draw?

How fast can you close?

How will funds be transferred to my account?

What do I need to start?

What does LTC stand for?

What does LTV stand for?

What documents do I need to close a loan?

What kind of insurance is required for your hard money loans?

Payments and Payoffs

What type of fees does WCP have?

Does WCP have prepayment penalties?

Does WCP provide auto-debit?

How do I get a payoff request?

Where do I mail payments to?

Who do I make payments/checks out to?

Questions About WCP

Questions About Hard Money Lending

What is a hard money loan?

A hard money loan refers to a loan that is secured by a tangible or "hard" asset (i.e. real estate). They are most commonly used to acquire and repair distressed properties in order to either sell them for a profit or keep them as a rental property. Real estate investors regularly use hard money loans to leverage their own capital and flip a greater number of properties.

What is a hard money lender?

A hard money lender is an individual or company that provides loans secured by an investment property to real estate investors and developers. These lenders make their money back via monthly interest payments and a loan payoff after the property has been sold or refinanced.

How does a hard money loan work?

An investor approaches a hard money lender with a potential investment property deal
The lender will "underwrite" (analyze) the deal - checking the numbers for the purchase price, construction budget, and after repair value of the property based off of comparables
If the numbers check out, the lender will provide the investor with their down payment amount, rates, and terms for a hard money loan
Once the lender and investor reach an agreement, the lender provides a Lender Letter or a Proof of Funds letter so that they can get the property under contract
Once the property is under contract, the lender will begin collecting the documents needed for closing on the property
Once all documents are collected and the property title is clear, the investor can close on the property
Each month, investors will make interest-only payments on their loan
If the loan includes a construction budget, construction draws will be released to the investor as they reach milestones throughout their rehab process (i.e. trashout/demo, framing/MEP, drywall/paint, tiling/flooring, finishes)
Once the property is completed and sold, the investor pays back the lender

For more info, check out the How Hard Money Loans Work Infographic!

How do I get a hard money loan?

Securing a hard money loan is relatively simple - it starts with a potential investment property. Once you have selected a property that you would like to purchase, rehab, and sell for profit, contact a lender and supply them with the following:

Property Address
Purchase Price
Estimated Construction Costs
After Repair Value (ARV) or Estimated Monthly Rent

The lender will underwrite the property deal, meaning they will confirm the ARV or Monthly Rent using comps, analyze the numbers, and evaluate your unique situation as a borrower. If the deal makes sense they will then provide you with a loan breakdown including your down payment, interest rates, and terms. Once you reach an agreement with the lender you are ready to close your loan secure your investment property.

What are points on a hard money loan?

"Points" refer to percentage points of a total loan amount that are paid up front by a borrower to a hard money lender. Nearly all hard money lenders charge points at the closing of a loan, as their interest rates often times do not generate significant revenue for the company. In a competitive market, lenders will offer the lowest rates possible to win clients, so points are where they can make money on each loan. These points often range anywhere from 2 - 5 percentage points depending on a borrower's level of investing experience, and the property deal itself.

How do I get a Proof of Funds Letter?

Simply contact our sales team today with a specific property in mind and within 30 minutes we’ll send you a signed letter on WCP letterhead that you can submit with your offer.

How do I get a loan breakdown?

All we need is the property address, offer/contract price, estimated renovation costs, and ARV (After Repair Value) or Estimated Monthly Rent. With this information, we can underwrite the deal and can provide you with a loan breakdown, with rates, in as little as 20-30 minutes.

Do you lend on primary residences?

No, WCP does not offer mortgages on primary residences. We finance investment properties via commercial loans.

Do I need to use my own capital?

Yes, we require a down payment that fits into our financing metrics. How much money you will need to bring to the table will depend on the deal itself as well as your specific financial scenario.

Can I purchase a property under my personal name?

No, WCP lends only to business entities (LLC’s, C Corps, etc.). Registering a business entity is easier than many think, and the process can often be started online through your state government.

Do you offer discounts for repeat borrowers?

WCP's Rewards Program ensures that every client automatically earns points on every loan with us. These points can be redeemed to pay for fee related to your next loan and are available immediately after loan closing.

Do you require a certain credit score?

We prefer to see credit scores of 680+, however, a lower credit score will not necessarily prevent a borrower from securing a loan. In certain cases, a lower credit score may simply affect the loan's interest rate or down payment amount.

Does WCP perform a credit check?

Yes, WCP will perform a credit check after receiving a loan application that includes your signed authorization to pull credit.

How do I start the process to obtain a hard money loan?

Getting started is easy, you can submit a quick online application, call us at (703) 348-0549, or email us at info@wcp.team to speak with our team of lending experts today!

How fast can I get a commitment?

We can provide a Proof of Funds letter in as little as 30 minutes.

How fast can you close?

We can close within 48 hours after the property title is clear and all documents have been received.

How will funds be transferred to my account?

WCP typically uses ACH transfers to send the funds to our clients, as there are no associated fees. We can also use bank wires at the request of our clients.

What do I need to start the loan process?

To start, you will need an investment property address, an offer/purchase price, estimated renovation costs, and ARV (After Repair Value).

What does LTC stand for?

LTC stands for “Loan to Cost” and is a lending metric based off of the total project cost (purchase price + construction costs) of a property.

What does LTV stand for?

LTV stands for “Loan to Value" and is a lending metric based off of the ARV of a property.

What documents do I need to close a loan?

A list of personal, entity, and property-specific documents that are needed for bridge and rental loans.

Do I need insurance and an appraisal for every loan?

Yes, both insurance and an appraisal will be required for every loan originated.

What kind of insurance is required for your hard money loans?

If you’re seeking a loan from us that includes any construction draws, you will need to acquire a builder’s risk policy. This typically covers the loan amount. If you’re refinancing through WCP with no intention of undergoing any renovations, then a simple homeowner’s policy is sufficient. A general liability policy is also required for every property.

Does every member of my business entity need to be on the loan?

Yes, we need every member of the entity to be part of the loan, and we will need documents from each one of them.

Is there a limit to the number of loans I can get?

No, there is no limit as long as none of your loans are delinquent or in default.

Can I get a loan extension if I reach the end of my loan term?

Loan extensions are determined on a case-by-case basis. Each loan is reviewed by our Investment Committee to make decisions on extensions.

Questions About Washington Capital Partners

Why should I choose WCP?

We can close fast, meaning you won't miss out on great deals
We offer best-in-class value between competitive rates and a rewards program for repeat clients
We have a full loan servicing team, meaning you always have our full attention
We know the industry, after assembling a team of fellow investors and real estate pro's - we've seen it all
We are flexible so that we can meet the needs of your unique investing situation
We have connections within the industry to bring you vetted off-market property deals
We focus on speed and efficiency, meaning less red tape and paperwork for you
We're local and we know the ins and outs of the markets we lend to

What is WCP’s mission?

Washington Capital Partners is the new standard in hard money lending – rooted in your need for faster, smarter, and more flexible funding.

Where does WCP lend?

We lend in New Jersey, Pennsylvania, Delaware, Washington DC, Maryland, Virginia, North Carolina, South Carolina, Georgia, Florida, and West Virginia.

What types of properties does WCP lend on?

We lend on residential (single-family, detached, and attached) and commercial (multifamily of 5+ units, mixed-use, condo conversions, retail, industrial, and developed land) properties.

What is WCP’s interest rate?

We can offer rates as low as 11% annualized. The factors that determine interest rates include: aspects of the property, a borrower’s track record, and level of experience investing. The best way to find out your interest rate is to give us a call at (703) 348-0549 and get your free loan underwriting!

What is WCP’s loan term?

WCP loans typically have a term of 12 months. However, many times large scale projects will require a longer loan term, which we are happy to discuss in order to accommodate our clients. By customizing the term to the scope of the project, we can save our clients unnecessary expenses such as extension fees, etc.

How much will WCP lend on a property?

We use either LTV (Loan to Value) or LTC (Loan to Cost) to determine how much we will lend on a property. For LTV, we will lend up to 70% of the ARV (After Repair Value). For LTC, we will lend up to 85% of the purchase price plus construction costs. After calculating both, we will lend on the lower of these two metrics.

What form of payments does WCP accept?

We accept payment via bank wire, ACH, auto-debit, and checks. We do not accept credit cards.

How long has WCP been operating?

Washington Capital Partners was established in 2012 and have been growing our services ever since. The wealth of knowledge and experience that our team possesses has allowed us to help countless investors meet their goals and build their businesses.

Are you hiring?

We are always looking for new, well-qualified candidates who could add serious value to the WCP team. If you are interested in employment, please email us your resume and cover letter at careers@wcp.team.

Questions About Payments and Payoffs

What type of fees does WCP have?

There is one pre-settlement fee (typically $1,500 with discounts applied to repeat clients and highly experienced investors) that covers attorney fees. We refer to this as the “Commitment Fee.” Construction Draw Fees are $300 per request, which covers the property inspection. Our only other standard fee is a Payoff Fee of $50 per Payoff Request and $200 for an Expedited Payoff Request.

Does WCP have prepayment penalties?

No, WCP does not assess pre-payment penalties on bridge loans. Our clients are more than welcome to pay off their loan before it matures. For rental products, borrowers can discuss with loan officers 5/4/3/2/1 stepdown, 3/2/1 stepdown, 1 year pre-payment, or no pre-payment penalty options

Does WCP provide auto-debit?

To provide exceptional customer service, we provide our clients with the ability to use auto-debit. This provides peace of mind to our clients that they will never make a late payment.

How do I get a payoff request?

For all loan payoff-related requests and inquiries, please call our Payoffs Team at (202) 722-0774. Please keep in mind that each Payoff Request comes with a $50 fee, and Expedited Payoffs are $200.

Where do I mail payments to?

8401 Greensboro Drive, Suite 960, McLean, Virginia, 22102

Who do I make payments/checks out to?

Please make all payments/checks payable to WCP Servicing LLC.

How much will WCP lend on a property?

What form of payments does WCP accept?

We accept payment via bank wire, ACH, auto-debit, and checks. We do not accept credit cards.

Questions About Construction Draws

What is the process for requesting construction draws?

The process is as follows:

When your project is ready for a draw inspection, please send an email request to draws@wcp.team. In your email, please include the property address and a breakdown of line-items ready for inspection. Please also provide the best phone number where the inspector can contact either you to arrange the site visit.
We strongly advise meeting the inspector at the property to help identify all work completed.
You will receive a copy of the inspection report once completed, at which point we’ll be happy to address any questions you might have. Please note, we typically cannot make changes to the results of the report once it’s been completed.
Once the results of the report are reviewed and accepted, the draw will be submitted to our loan committee for approval. Once approved, a lien release will be sent to you for e-signature and the wire will be disbursed to your bank account on file.

How long does it take to get a construction draw?

Draws are typically disbursed within 3-4 business days from the day we receive the inspection report. The process can be expedited by:

Being on the lookout for calls/messages from the inspector for scheduling
Providing any supplemental documentation requested by the Draws team
Reviewing and accepting inspection report results when received
Completing the lien waiver when received

Why is there a fee for construction draw requests?

The draw fee covers the cost of the inspection as well as the wire fee associated with your draw disbursement. This amount, typically $300, is netted from your draw wire before being disbursed. Repeat WCP borrowers can also use Rewards Points to pay this draw fee, for more information please visit: (hyperlink to rewards program).

Can I make changes to my construction budget after closing?

Once the loan is originated, the figures on the approved budget are final and cannot be altered or redistributed. For construction budgets exceeding $150,000, we advise allocating 5-10% of your funds to a contingency line. This ensures that you have a reserve available for unforeseen construction costs.

For more information, please refer to your Construction Draw Guidelines included with your WCP borrower documents.