Borrowing at Blackhawk
Who can apply for a loan?
Any individual, company, or partnership which holds title to a real estate property used for investment or commercial purposes may submit a loan request on the Blackhawk website.
How much can I borrow and what type of loan can I get?
Initially, the minimum amount you can borrow is $25,000 with exceptions. The maximum is $200,000,000. The loan terms generally include a fixed-rate, interest only for 1 – 3 years, and secured by the property. A 65% loan-to-value is typically the maximum any peer lenders may provide.
Who will I be borrowing from?
Our lenders are many different U.S. residents (accredited investors), investment funds, and companies registered with the proper governmental agencies. All peer investors will be closing through a national accredited title company.
What interest rate will I pay?
You get the maximum interest rate you request or lower. At Blackhawk, the rate you pay is always determined by matching profiles. If no match occurs, then it is likely your requested rate is lower than the prevailing marketplace for your loan type.
How do I borrow?
First, register as a borrower on Blackhawk and submit your loan request. Once you have done this, we will follow up with a quick interview and we may request supporting documentation from you in order to support real estate economics and prevent fraud. Then we will decide if your application can be approved. Once approved, your loan request will be matched with all the peer investors on our platform whose lending criteria match your loan request. When a peer lender expresses interest in your loan we will notify you.
How will you verify the integrity of my loan request?
We will research including licensed third party professionals the value of the subject property, borrower, and your ability to successfully exit the loan upon maturity.
What documents do you need from me?
We may need the following documents from you:
- Form 1003 (credit application)
- Borrower’s Authorization
- Broker Opinion Letter and or Property Valuation
- Rent Rolls
- Copy of Tenant Lease Agreements
- Company Financials
- Company Operating Agreement
- Subject Property Pictures
- Construction and/or Rehab Budget
What information about my property and me will lenders see?
Potential lenders can see a Preliminary Title Report, appraisal, credit report, etc., as they will complete due diligence prior to drafting loan documents. They have already agreed to a non-disclosure included in the user policies.
How quickly can I get a loan?
Once your loan request has been screened for integrity, it goes live on the site, and a match occurs immediately or not. Given a match, upon all necessary documents and completed borrower forms are received the time you can receive funds may be as quick as 5 business days.
Can I edit my loan request once it is posted?
You cannot edit the details of your loan request once it has been submitted. If you have made an error in your details, you may contact us directly and we will review your request accordingly.
What happens once my loan request is fully reserved?
Once your loan request becomes fully reserved, you will receive a Letter of Interest and will have 5 days to accept the terms as per the proposed loan. You do not have to accept this Letter of Interest. If you do not sign it within 5 days, your loan request will be suspended and all reservations will be made void. If you accept the Letter of Interest terms, then the investor will initiate due diligence and upon success will issue loan documents for your review.
What happens if my loan does not become fully reserved?
If your loan request has not been fully reserved within a time period, we will suspend it from Blackhawk and/or you may decide to change terms to be more favorable in procuring a loan.
What fees do you charge borrower applications?
It is free to register on Blackhawk. If you enter into a loan contract, we will charge you a consulting fee of 2.5% of the total loan amount upon close of escrow. This is to cover the costs of facilitating the matching and borrowing process. Our minimum fee is $5000.
How do I make loan repayments?
The lender or loan servicing company will complete this, as we do not offer advice on any loan calculations.
How do I make loan interest payments?
Your loan contract specifies the monthly interest payments payable to the lender.
When do my monthly repayments begin?
Your loan contract specifies the beginning and last interest payment payable to each lender.
What happens if I’m late making a repayment?
Your loan contract specifies the terms, cure, and/or penalty payable to each lender. Blackhawk does not give any financial advice.
Can my business pay back a loan early?
Your loan contract specifies the terms for pre-payments.
How do I view the status of my loan?
You can view the status of your loan at any time by logging in to your Blackhawk user account.
How do I close my account?
Contact Customer Service, we will be sorry to see you go.
I have another question about Blackhawk. How do I contact you?
You can get in touch with us in lots of different ways. Send us an email to firstname.lastname@example.org, post a message on Facebook, tweet us or even call or write us a letter. Whichever way suits you, we’d love to hear from you.
Lending at Blackhawk
Can anyone become a lender at Blackhawk?
Any person or company can be a Blackhawk lender. However, you must meet the following criteria:
- Be over 18 with a valid identification
- Qualify as an “accredited investor” as defined by the SEC
b) If you are lending as a company, you must:
- Be registered with the proper governmental agencies
- Have and maintain proper licenses in good standing
When lenders register on the site, they will be interviewed and screened prior to account approvals.
How much can I lend?
There is no cap on the total you can lend to real estate borrowers through Blackhawk. You can invest from $25,000 and/or 100% on each loan request. (In some states it will vary as to how many fractional lenders can participate on title). You can choose to apply an annual interest rate of your choice (usually, between 6% – 12.5%).
Who can I lend to?
On Blackhawk, you can lend to companies, individuals, and partnerships that are looking for loans between $25,000 and $50,000,000. We review each potential borrower/property and we only allow businesses/individuals to borrow if they have successfully completed a vetting process. We base this process on validating key up-to-date financial information and qualifying the integrity of each loan request posted on the site.
Does Blackhawk give a credit risk rating for each borrower?
Like most peer lending sites for consumer or business lending, we also give a simple credit risk rating for each borrower. Additionally, credit reports are supplied by the borrower including all other due diligence documents to demonstrate validity of the loan request.
Can I lend to local real estate borrowers?
As a lender, you might prefer to support borrowers and properties from your local area or county when you are making lending decisions. This is acceptable, or you may like to be the only lender on real property outside your area due to lower values. Either way, you have full control over all your lending decisions.
How do I lend?
First, register as a peer investor with Blackhawk. You will be automatically matched with loan opportunities that meet your stated investment criteria. Upon a successful match, reserve all or part of the loan amount. After the loan request is fully reserved, then all necessary documentation will be prepared by third party licensed professionals for your review.
What is The Bird’s Eye View?
The Bird’s Eye View is another exciting feature of the site. It is a one-page executive summary containing the salient facts about a loan opportunity, divided into two key parts: a quantitative and a qualitative analysis for your quick and easy review.
How do I reserve the right to invest?
To invest, click on the “Start Now” button in executive summary. Type the amount you are prepared to lend (all or part of the requested loan amount). Next, you will receive detailed information and third party documents for review and approval.
What fees does Blackhawk charge investors?
There is no charge for investors.
What fees does Blackhawk charge borrowers?
2.5% of the Loan amount.
How risky is lending to real estate borrowers?
It is important to remember that when lending to borrowers using commercial and investment property as secured collateral, if a debt is not paid, the property is forfeited and sold to pay back the investor including all the outstanding interest and costs to collect.
How does Blackhawk prevent borrower fraud?
The company uses various measures behind the scenes to reduce the likelihood of fraud. We validate the integrity of the loan request from a borrower credit check, property title search, and other Internet sources to carry out a comprehensive screening.
Additionally, Blackhawk will manage third party services from licensed appraisers, national title companies, legal, and credit reporting agencies for further insurance and investor protection.
Borrowers are not borrowing from me. What should I do?
Check how competitive your rates are compared with those of other peer investors. You may be requiring too high of an interest rate for specific commercial notes.
When do I start getting repayments?
This will be decided through you and registered in your profile; one year, two years or more as it is up to you, and specified in your Loan Contract.
Can I reinvest my funds as they come back from my borrowers?
Do I have to pay tax on any money I earn through Blackhawk lending?
You will need to Consult a Tax Expert in your area to advise you. Blackhawk does not give any tax advice.
How can I contact you?
You can get in touch with us in several ways.
Send an email to email@example.com, post a message on our Facebook page, tweet us, or call at 888.822.3888, or mail us a letter (1793 Union St., 2nd Fl, San Francisco, CA 94123). Whichever way you prefer, we’d love to hear from you.