How We Work

When a prospective borrower contacts ABL, we immediately begin to assess whether the project meets our underwriting criteria. We gather data on the experience level, financial, and credit background of the borrower, the current and future value of the project and will ask for a summary of the proposed deal.

It is a plus if the borrower, or representative, is prepared with the following crucial information at the point of initial contact: property address, purchase price, rehab or new construction budget, future expected value, payoff strategy (sale or refinance) and expected timing of exit. If a proof of funds is needed to help secure the acquisition of the property, we can assist with that as well.

We can typically tell the borrower whether or not there is a good chance of ABL funding the loan after a 10 minute conversation. If there is, then we move to the 2nd stage of our process, which is, Underwriting.

Loan closing generally occurs at a title company office, although it also frequently occurs at an attorney’s office. At the close, there are typically two transactions that occur – the property purchase and the loan settlement. Our staff will have reviewed all the necessary documentation prior to the close so there will be minimal complexity or stress at the settlement table. With respect to the loan settlement, our borrowers will be required to sign a variety of loan related documents which will include (but are not limited to) a mortgage, note, security agreement, personal guarantee, investment affidavit and assignment of rents and leases. We will have already sent loan proceeds to the settlement agent, so after all the documents are signed and reviewed by the various parties to the loan, we will approve disbursement of loan proceeds either to the escrow agent for future disbursement, the seller of the house, or directly to the borrower.