Providing Premier Real Estate Investment Opportunities

Q: Why would a borrower be willing to pay the higher interest rate of a privately funded construction loan, when institutional banks offer more appealing terms and interest rates, if he is a reasonable credit risk?

A: Institutional banks do not typically make residential construction loans to small to mid-volume builders/contractors.

Q: What happens if something happens to the borrower, and he is not longer able to work? 

A: This scenario has not happened in Harmon's history. However, if it did, Harmon would manage the process to get the project completed and sold. The borrower’s loan is funded completely, from the very first day of the loan. Therefore, if something were to happen to the borrower, Harmon would employ the services of another builder to get the project completed, pursuant to the approved budget.

Q: What happens if there is a problem?

A: All decisions pertaining to the property are subject to majority rule. The majority would dictate the steps to be taken, and Harmon carries out the preferences of the majority. 

Q: Why do most institutional banks prefer to avoid making construction loans to the small to mid-volume builder/contractor?

A: Construction loans require “hands on” and streamlined management. Banks do not typically have the infrastructure to support the necessary controls. 

Q: What FICO score is required, in order for a prospective borrower to obtain a construction loan through Harmon Financial?

A: The creditworthiness of a borrower is analyzed. However, Harmon does not look at FICO scores, specifically. We study the entire picture, including the borrower’s credit report, experience and record. And we also scrutinizes the project, the budget, the loan-to-value, and the complexity of the project, to determine qualification. 

A: Once Harmon has received the 2 required forms from a new investor, an account is set up for them, and they are ready to go. 

Q: Can I invest through my IRA, 401(k) or Trust?