Step One Finance - Financial Power

Step One Finance aims to simplify the process of securing financing for real estate investments, particularly for fix-and-flip projects, rental properties, and new construction. They position themselves as a direct lender, cutting out the middleman (like brokers) to offer potentially faster funding and more personalized service. Their focus is on borrowers who might struggle to secure traditional bank financing, often due to the short-term nature of their projects or the condition of the properties involved. The company offers a variety of loan products designed to cater to different investment strategies. Hard money loans, their core offering, provide short-term financing based primarily on the after-repair value (ARV) of a property, rather than solely on the borrower’s creditworthiness or income. This makes them a viable option for investors purchasing distressed properties that require significant renovations. Bridge loans, another common offering, serve as temporary financing solutions to “bridge” the gap between selling one property and purchasing another, or while waiting for long-term financing to be secured. They also provide options for ground-up construction, catering to those building properties from scratch. A key selling point for Step One Finance is the speed and flexibility they offer. Traditional bank loan processes can be lengthy and demanding, which can be detrimental to real estate investors working under tight deadlines. Step One Finance boasts a streamlined application and approval process, promising faster funding compared to traditional lenders. This responsiveness is crucial in competitive real estate markets where speed can be the difference between securing a deal and missing out. Their underwriting process emphasizes the asset and the investor’s plan. While credit scores and financial history are considered, the primary focus is on the property’s potential and the borrower’s experience in successfully completing similar projects. This means that even borrowers with imperfect credit or limited income can potentially qualify for financing if they present a solid business plan and a worthwhile investment opportunity. Step One Finance typically operates with clearly defined loan terms, including interest rates, loan-to-value (LTV) ratios, and points. These terms are typically higher than traditional bank loans, reflecting the increased risk associated with short-term lending and distressed properties. However, the higher cost can be justified by the ability to quickly secure funding and capitalize on investment opportunities that might otherwise be unavailable. Before engaging with Step One Finance, potential borrowers should carefully review the loan terms and compare them with other financing options. Understanding the total cost of the loan, including interest, fees, and any prepayment penalties, is essential for making an informed decision. It’s also advisable to conduct due diligence on the company itself, checking reviews and ensuring they have a solid track record. Ultimately, Step One Finance provides a valuable service for real estate investors seeking alternative financing solutions, particularly for projects that require speed, flexibility, and a focus on the asset’s potential.