Hard Money Lending Process

• The preliminary loan approval will list the conditions that will need to be satisfied in order to finalize the loan.  These items may include:  an appraisal, an insurance binder, a detailed scope of work with a draw schedule, the contractors' credentials, your source of funds, etc.  Once these conditions have been satisfied, your loan will be closed.

• At closing, Petrous Capital will fund the entire loan amount but will hold a reserve for the construction draws and prepaid interest for the six month entire term of the loan. Construction draws will be disbursed according to the draw schedule after each construction phase is completed and verified by our inspector.  Disbursement checks are cut the day after the draw inspection is completed.  Proper permits are required for all projects and all work is to be completed in a workman-like manner. There will be no disbursement for partial completion of work.

• Interest will accrue on the entire loan balance reagrdless whether the funds have been disbursed or remain in reserve. Upon final sale of property, Petrous Capital will refund any undisbursed monies from the reserve as part of the final loan payoff.

• This process is designed to provide a framework for successful completion of projects.  The guidelines are established to ensure that all parties have an excellent opportunity to make maximum profit with minimal risk.