Disclosures

General Disclosures

• Nature of the Loans: Lake Norman Private Money Lending provides private money loans and hard money loans. These loans are primarily intended for business, commercial, and investment purposes (e.g., Fix & Flip, rental property financing, construction) and are not intended for personal, family, or household use.
• Property Collateral: All loans offered are real estate-backed. The loan is secured by a mortgage or deed of trust on the investment property. Failure to repay the loan may result in the loss of the collateral property.
• Regulatory Status: Lake Norman Private Money Lending is not a bank or a traditional depository institution. Our funding is provided by private investors and/or institutional capital.
• North Carolina Focus: While expertise is noted in local North Carolina markets (including Lake Norman and Mooresville), borrowers are encouraged to Contact Us regarding funding availability for properties in unlisted cities or out-of-state deals.

Loan Product Disclosures (Hard Money / Private Money)

• Higher Risk/Interest: Hard money and private money loans typically carry higher interest rates and fees compared to conventional bank financing due to the faster closing times, flexible terms, focus on asset value, and shorter loan durations.
• Interest Rate Range: The stated interest rate range is 10–12% (Interest-Only). This range is an estimate. The final interest rate for any specific loan is determined by various factors, including the borrower’s experience, the specific project, the loan amount, the risk profile, and current market conditions. The borrower’s final rate may fall outside this range.
• Points/Origination Fees: Loans are subject to an origination fee, commonly referred to as “points,” stated to be 1–3% points. This fee is typically paid at closing and is calculated as a percentage of the total loan amount.
• Loan-to-Value (LTV) / Loan-to-Cost (LTC) / After Repair Value (ARV):
  • Up to 80% Loan-to-Cost (LTC) is referenced for hard money real estate loans.
  • Up to 80% After Repair Value (ARV) is referenced for Fix & Flip and Rent products.
  • The final maximum percentage is subject to underwriting and appraisal/valuation of the property. Not all borrowers or properties will qualify for the maximum advertised percentage.
• Loan Term: Typical loan terms are stated as 6–12 months for certain products. Rental products are referenced as a 10-year fixed product. These terms represent the standard offerings and may vary based on the specific loan agreement.
• Interest-Only Payments: Payments during the loan term are stated as Interest-Only Payments. This means the borrower will not be paying down the principal balance until the loan matures or is paid off (e.g., through sale or refinance). Borrowers must be prepared to pay the full principal balance at the end of the loan term.
• No Income Verification: While the company advertises “No income verification,” this refers to a limited review of the borrower’s personal income/tax returns. Borrowers must still demonstrate a credible and verified exit strategy (e.g., refinance or sale of the property) and have sufficient cash reserves to cover payments and project costs.

Process & Timeframe Disclosures

• Closing Time: The advertised closing timeframe of 7–10 days and statements of “Industry leading closing times” are targets based on an efficient, complete application and timely cooperation from the borrower, title company, and appraisal/valuation process. This timeframe is an estimate and not a guarantee.
• Proof of Funds/Term Sheet: The provision of an “Instant proof of funds letter” and “Instant term sheet” is contingent upon the completion of the initial online application and may be subject to automated qualification rules. The term sheet is non-binding and subject to full underwriting review, appraisal, and final approval.
• Fast Decisions: The promise of a decision in 24–48 hours or less is for the initial approval/term sheet. Final loan approval and closing are subject to further due diligence.
• Construction Draws: The statement of “Super fast construction draws, no receipts required” is subject to the terms and conditions outlined in the specific loan agreement, including potential inspection requirements and percentage of completion milestones.

Discount Disclosure

• Discounts for Repeat Borrowers: This program is offered at the lender’s sole discretion and is subject to the borrower’s payment history, successful completion of prior projects, and current underwriting criteria. The terms and extent of the discount may change at any time.