Frequently Asked Questions

The simplest way is to use our online application at /_demo/sites-prospect-nextres/apply — it takes about 5 minutes and covers the basics of your deal. Alternatively, you can call us directly at (858) 299-5570 and speak with a loan officer right away. We review every application same business day and can issue a term sheet within 24 hours for most deals.

No real estate license is required. For most loan products, we do recommend borrowing through an LLC or corporation rather than your personal name — it provides liability protection and is standard practice for investment property lending. We can lend to individuals, but entity borrowing is strongly preferred. If you don't have an entity yet, we can walk you through what you'll need.

NextRes currently lends in 47 states. We are not currently active in Minnesota, Nevada, or South Dakota for private lending purposes. We lend in all major real estate markets including California, Texas, Florida, New York, Illinois, Arizona, Georgia, Colorado, and the entire Southeast and Mid-Atlantic. Contact us if you're unsure about your specific state.

Our average close time for fix-and-flip and bridge loans is 5 business days when documentation is complete and title is clear. Our fastest close to date was 3 business days for a repeat borrower with a clean file. New construction and DSCR rental loans typically take 10–15 business days due to additional underwriting requirements. We are transparent about timelines from the start — no surprises.

We lend to first-time investors, though terms may differ slightly from experienced borrowers. For fix-and-flip loans, first-timers can still receive up to 85% LTC (vs. 90% for experienced investors). For DSCR rental loans, experience requirements are minimal as the property cash flow does most of the qualifying. For new construction and large multifamily deals, prior experience becomes more important. Tell us your background and we'll find the right structure.

We lend on non-owner-occupied residential investment properties including: single-family homes (1–4 units), condominiums (warrantable and non-warrantable), multifamily properties (5–50 units), short-term rentals and Airbnb properties, and ground-up new construction. We do not lend on primary residences, commercial properties (retail, office, industrial), or raw land without entitlements.

Our minimum loan amount is $75,000 for fix-and-flip and bridge loans, and $100,000 for DSCR rental loans. For multifamily and construction, our minimum is $500,000. We have no stated maximum — our largest single loan closed to date was $22M. For loans above $5M, additional underwriting steps apply. Call us to discuss large transactions.

Yes. Our DSCR rental loan program offers 30-year fixed, 5/1 ARM, 7/1 ARM, and 10/1 ARM options. These are permanent financing products designed for buy-and-hold investors who want long-term debt without qualifying on personal income. We also offer portfolio blanket loans covering multiple properties under one loan structure.

Yes — bridge loans on existing owned properties are available for value-add repositioning, capital relief, or as a stepping stone to permanent financing. We can lend up to 75% of current appraised value (or higher if you're doing substantial improvements). These are often used to pull equity out of a stabilized property to fund the next acquisition.

Yes. We offer cash-out refinances on investment properties through both our bridge loan and DSCR rental loan programs. For DSCR cash-out refinances, we typically require 6–12 months of seasoning (ownership), though we can sometimes be flexible for experienced investors with strong deals. Maximum LTV for cash-out is generally 75% for rentals and 70% for multifamily.

Credit requirements vary by product. For fix-and-flip and bridge loans, we have a minimum of 620 FICO, with better rates available for borrowers above 680. For DSCR rental loans (30-year fixed), our minimum is 680 FICO, with optimal rates at 720+. For short-term rental DSCR, we require a minimum of 700. We always look at the full picture — credit is one factor, not the deciding one.

No. NextRes does not require personal tax returns, W-2s, pay stubs, or income verification for fix-and-flip, bridge, or DSCR rental loans. We underwrite the asset and the borrower's overall experience and track record. This is one of the primary advantages of private lending over conventional bank financing. The only exception is our agency-eligible products, which do require full income documentation.

DSCR stands for Debt Service Coverage Ratio. It's calculated by dividing the property's annual gross rental income by the annual loan payment (PITI — principal, interest, taxes, and insurance). A DSCR of 1.0 means the rent exactly covers the loan. A 1.25 DSCR means the property generates 25% more income than the payment. Our minimum DSCR for most rental loans is 1.0, with the best rates available at 1.25+. For short-term rentals, we may use AirDNA or market rent projections.

For fix-and-flip/bridge loans: (1) Purchase contract or property info if pre-offer, (2) Renovation budget/scope of work, (3) Entity documents (LLC operating agreement, EIN), (4) ID / driver's license, (5) Track record of past deals if applicable. For DSCR rental loans: (1) Property address and current rent info or lease, (2) Entity docs, (3) ID, (4) 2–3 months bank statements (to confirm liquidity for down payment and reserves).

Yes. We welcome first-time investors. Your first deal with us typically comes with slightly more conservative LTC/LTV ratios and may require a brief introductory call with one of our loan officers to discuss your plan. Once you close your first deal successfully, your terms improve significantly for subsequent loans. Many of our top repeat borrowers started with their very first flip through NextRes.

Rates are deal-specific and change with market conditions. As of mid-2025, our indicative ranges are: Fix & Flip / Bridge: 10.0%–12.5% (interest only); DSCR Rental (30yr fixed): 7.75%–9.25%; New Construction: 11.0%–13.0%; Short-Term Rental DSCR: 8.0%–9.75%. Final rate depends on LTC/LTV, credit score, experience, and market. Contact us for a same-day rate quote on your specific deal.

Our standard fees are: (1) Origination fee: 1.5%–3% of the loan amount, depending on loan size and complexity. (2) Appraisal fee: $500–$1,500 for standard residential, more for complex or large properties. (3) Document/processing fee: $995–$1,500. (4) Title/escrow fees vary by state and title company. We do not charge application fees, junk fees, or rate lock fees. All fees are disclosed upfront in your term sheet.

Our fix-and-flip and bridge loans have no prepayment penalties — pay off early anytime. Our DSCR rental loans may include a soft step-down prepayment penalty for the first 3 years (e.g., 3%/2%/1%) to match the economics of our capital sources. Some DSCR products are also available with no prepay for a slightly higher rate. We'll present both options so you can choose what works best for your hold strategy.

Origination fees are calculated as a percentage of the loan amount and are typically paid at closing from your own funds or deducted from the loan proceeds (on some programs). For example, a 2% origination fee on a $500,000 loan = $10,000. Origination is quoted on your term sheet before you commit, so there are no surprises. On larger loans ($2M+), we have more flexibility on fee structures.

Fix-and-flip and bridge loans are typically interest-only with a fixed rate for the loan term (12–24 months). DSCR rental loans are available as 30-year fixed, 5/1 ARM, 7/1 ARM, or 10/1 ARM. The ARM products have a fixed rate for the initial period (5, 7, or 10 years) and then adjust annually based on SOFR plus a margin. Most long-term buy-and-hold investors prefer the 30-year fixed for payment predictability.

When you close a fix-and-flip loan, your renovation budget is held in a draw reserve account. As you complete phases of the renovation, you submit a draw request with photos and a description of completed work. Our team orders a third-party inspection (or uses a desktop review for smaller draws). Draws are processed within 48 hours of inspection approval and wired directly to your account. Most projects have 3–6 draws over the course of the renovation.

For standard fix-and-flip loans, our draw inspections are completed within 24–48 hours of request, and funds are released within 48 hours of approval. For new construction projects with draw amounts over $100,000, we may require a licensed inspector on-site, which can take 48–72 hours to schedule. We offer a desktop draw review for draws under $50,000 where the inspection is done via photos — these are typically approved same day.

Yes — you can use any licensed, insured contractor of your choosing. We do not require borrowers to use a preferred vendor list. Your contractor must carry general liability insurance (minimum $1M coverage) and provide a licensed contractor's license number in states where required. We may request a brief conversation with your GC for large new construction projects, but this is the exception, not the rule.

Cost overruns happen in real estate. If your renovation costs exceed your original budget, you have several options: (1) Fund the overage from your own cash reserves, (2) Request a loan modification to increase the draw reserve (subject to approval and additional fees), or (3) Adjust the scope of work to stay within budget. We recommend building a 10–15% contingency buffer into your renovation budget before closing. Our team will flag this in the underwriting review if your budget seems tight.