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frequently asked questions

What makes Gallagher different?​​​
At Gallagher, we offer a wide range of different loan programs. Our team has a background in real estate investing, as well as the extensive knowledge required to work with a variety of loans and property types. We understand the need to access funds quickly and easily. That's why our process requires only a few steps, and our response time is designed to ensure you do not miss an investment opportunity.
How long does it take for Gallagher to approve loans?
We understand that market dynamics change in the blink of an eye. That's why our approvals are issued within 24 to 48 hours, some of them may take longer depending on the type of loan or in case of discrepancies in the application.
How can I contact a Loan Consultant?​
We'd love to hear how we can help you and learn a little more about your interests. We are available during standard business hours. You can reach us toll-free at 1-800-369-2342 to find out in advance how much funding you are likely to receive.
How do I apply for a new loan?
Submitting an application can be done in a few simple steps. Fill out an online application, or call or email us with a basic deal summary. If you email us, we will review it and call you back, and if you call us, we will speak with you immediately. We will listen to what you are looking for. Then we will ask you some questions about the profitability of your business, your experience, the value of your property, the liquidity you have available, and your repayment plan for our loan. We will tell you approximately how much money we can loan you and at what cost. We will also tell you what the process is for closing our loan and what the costs are.
If we think the deal is feasible, we will provide you with a document outlining the entire structure of the deal and all costs.
Is good credit required to get a loan?
While we do consider your creditworthiness when doing business, you do not have to have an excellent credit rating to do business with us.
Is Gallagher a direct lender?
Yes, in addition to controlling our own funds and making decisions, we are a direct lender.
What is a bridge loan?
A bridge loan is a short-term, temporary real estate loan secured by the asset that can close faster than term loans or conventional loans. It is great for real estate investors because not only can it be closed quickly, but the guidelines are looser. This type of loan is used as a temporary source of capital while the borrower secures permanent financing. This program is primarily used to bridge the gap between the purchase and sale of the property.
If you want to learn more about this product, we invite you to visit our Bridge Lending section and find out if this option meets your needs.
How does a bridge loan work?
Bridge loans vary widely in their terms, costs, and conditions. Some are structured so that the old home's first mortgage is paid off in full at the conclusion of the bridge loan, while others have the new debt added on top of the old.
Borrowers may also encounter loans that handle interest differently. Some have monthly payments, while others require interest to be paid either upfront or as a lump sum at the end of the term.
Most, however, have a handful of general features in common:
  • They usually have a term of six or 24 months and are secured by the borrower's old home.
  • Lenders rarely make a bridge loan unless the borrower agrees to finance the mortgage for the new home with the same institution.
  • Interest rates can range from the prime rate to the prime rate plus 2 percent. Also, with most lenders, you can only borrow up to 80 percent of the equity in your old home. With Tru Capital, you can borrow up to 90 percent.
  • If you want to learn more about this product, we invite you to visit our Bridge Lending section and find out if this option meets your needs.
    What is a construction loan?
    A construction loan is a short-term loan to finance the construction of a real estate project. They usually have a term of 12 to 36 months and are intended to help the builder pay for the construction of his project.
    At closing, a portion of the loan amount is used to purchase the property. The remaining balance is held in escrow and disbursed to the borrower upon completion of the project. There are two main types of construction loans: Loans for renovation of an existing project (rehabilitation loans) and loans for construction of a new project. You can learn more about this product in our Ground-up construction section.
    How does a construction loan work?
    Although there are many types of loans, it is important to note that this is not a traditional mortgage where payments are amortized and consist of principal and interest. These loans are usually interest-only loans, meaning that the monthly payment consists only of the interest due on the loan and does not reduce the total amount of the loan.
    The payment can be either a Dutch payment, in which the borrower pays interest on the entire amount of the loan, or a non-Dutch payment (also known as "New York interest"), in which the borrower pays interest only on the amount of the loan disbursed.
    What is hard money?
    A hard money loan is a type of loan secured by real property. Hard money loans are considered loans of "last resort" or short-term bridge loans. These loans are used primarily in real estate transactions, and the lender is usually an individual or business rather than a bank.
    A hard money loan, usually taken out for a short period of time, is a way to raise money quickly, but at a higher cost and with a lower loan-to-value ratio. Because this type of loan is based on collateral rather than the applicant's financial situation, the time frame for funding is shorter. The terms of hard money loans can often be negotiated between the lender and the borrower.
    What are the benefits of hard money?
    One advantage of a hard money loan is the approval process, which is usually much faster than applying for a mortgage or other traditional loan from a bank. The private investors behind the hard money loan can make decisions more quickly because the lender focuses on the collateral rather than the financial condition of the applicant.
    Another advantage is that hard money loans do not use a traditional underwriting process. Instead, deals are evaluated on a case-by-case basis. You are negotiating with an individual or private company - not a commercial bank that sets firm rules - and it's possible to change repayment schedules and the term of the loan.
    An added benefit is that if you purchase an investment property, the lender will approve you for a loan equal to the value of the property. When you take out a loan against another property that you own, its value determines the loan amount. Unlike a traditional loan, you do not have to pre-qualify for a specific loan amount and then search for properties based on the pre-approval.
    What credit score do I need to qualify?
    Your investment property - not your finances - secures the loan. You do not need an outstanding credit history to be approved for hard money loans. While there is no set benchmark, most lenders will approve applications with a credit score as low as 600.
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