Private Lending Resources

RoseRock started in 2009 as a developer, adding the private lending fund in early 2019 and a NNN lease acquisition fund in late 2019. Our team approaches loans with a developer’s mentality and partnership mindset since we understand the teamwork it takes to get each project across the finish line.

RoseRock is based in Texas and will consider all loans in Texas. RoseRock will also consider loan requests in the Southeastern US, along with other select states such as Alabama, Arkansas, Colorado, Georgia, Utah, Missouri, North Carolina, Tennessee, West Virginia.

RoseRock typically originates loans between $100,000 and $5,000,000. The type of asset and the geographic area will determine the maximum loan amount we can provide on a per-project basis.

RoseRock provides short-term funding solutions for real estate investors, typically between 6 months and 12 months. The term is determined on a per-loan basis depending on the scope of the project and exit strategy.

The closing timeline is often dependent on third parties, such as title companies, appraisers, and environmental consultants depending on the project and scope of the loan request. RoseRock will provide borrowers with several options with the goal of closing the loan as soon as possible while using reputable and experienced third-party service providers.

A hard money loan is a type of loan that is based on the future value of the asset and a borrower’s ability to reach that future value. It is a commercial loan offered to real estate investors purchasing a property for commercial business purposes. Hard money loans are not offered for owner-occupied properties.

A bridge loan is different than a hard money loan since it is based on the as-is value of the project and is a short-term solution for borrowers who need to bridge the gap to longer-term funding options.

These types of loans are best utilized by real estate investors purchasing one or several properties for business investment purposes. Real estate investors purchasing residential or commercial assets can utilize different types of private loans depending on the project’s needs.

Hard money loans commonly provide borrowers with higher leverage and increased funds for a project. RoseRock typically includes 100% of construction/repair costs in the loan and the majority of the acquisition cost if not 100%. This type of loan also can be faster and more flexible than traditional loans since lenders can tailor a loan to the specific asset type and project.

Hard money loans have higher interest rates than traditional loans due to the increased risk of basing the loan on a future value. If the project does not reach the expected future value or takes longer than expected, the borrower should be prepared with liquidity to cover additional carrying costs and a backup exit strategy.

A hard money lender refers to a lender who only originates this type of loan. A private lender can originate hard money loans, bridge loans, and other types of loans depending on their preferences. Another difference is private lenders typically use their own funds to originate loans, also known as a direct lender, whereas a hard money lender can sell their loans on the secondary market in order to originate more loans.
Direct private lenders have more consistency and flexibility in their product offerings since they are not dependent on institutional investors buying their notes to originate additional future loans.

The types of assets a lender will accept as collateral is based on the lender’s preferences. Direct private lenders have more flexibility since they are not dependent on the interest of secondary market buyers, so they often provide a wider product offering. RoseRock accepts the following real estate collateral secured by a first-lien position: land, commercial, residential, multifamily, medical and more.

Borrowers will be requested to submit documents showing personal financial strength and project-specific documents. Examples of these types of documents are a personal financial statement, bank statements, tax returns, site or build plans, construction or renovation budget, and others depending on the type of loan request and asset.

While a credit score doesn’t determine an automatic approval or denial, we do consider your credit score and the different components that make up your credit score. The minimum credit score varies by asset type and project. For larger loans or more complex projects, we would like to see a higher credit score to verify a borrower’s repayment history and ability to make payments in a timely manner for existing debt obligations.

Loan to Value uses the collateral’s value to determine the loan amount. Loan to Cost uses the project’s cost to determine the loan amount. RoseRock can provide up to 100% Loan to Cost for a project for experienced real estate investors. For RoseRock’s Bridge loans, the loan is based on the as-is value of the collateral. For RoseRock’s Fix and Flip or Construction loans, the loan is based on the future value of the collateral based on the borrower’s renovation or construction plans for the project.