Answers for Yalla Funding Solutions

At Yalla Funding Solutions we pay attention to the details. We don't just process deals and get loans — we take the time to talk with clients, understand their needs, and evaluate other options that may be out there. We take things to a higher level and do not run a loan factory like many others do.

A good broker saves you time and money in the long run by matching the deal to the right lender, packaging it the way that lender wants to see it, and avoiding avoidable dead ends. Relationships and market knowledge help negotiate terms, and experience helps you know what issues to push back on and what not to push on. A good broker also knows how to compare offers and help you identify the best one — because what looks like the best offer on the surface may not be. The goal is to get you the best financing for your project and a cleaner path to approval and execution.

Besides the practical value of saving time and money, lenders will often charge more to unbrokered clients because they end up doing a lot of the work the broker would handle. A good broker reduces friction for the lender, which can help keep pricing tighter and the process smoother.

It's critical. A lender needs a clear, concise story on why the deal works. Long pitch decks and complex spreadsheets usually don't help — you have 2–3 minutes to get interest. A tight presentation with the documentation the lender expects is the secret to getting a strong offer.

Lenders have a target return for a loan. They can reach it through upfront points or buydowns, the interest rate, or a prepay structure — they care about the total economics, not where it comes from. Many lenders use time‑value‑of‑money modeling to calculate those numbers. In simple terms, the value of a loan is the interest it will earn over the expected term, especially during the prepay period (adjusted if prepay declines over time). As a rule, you can trade points for rate as long as the prepay period is long enough.

Anywhere from a day or two to 90+ days depending on the loan type and terms. As a rule, the longer the close, the better the terms. Most investment loans can close in about 14 days with decent terms. Commercial tends to take a bit longer as the underwriting is more involved. Bridge closes faster than permanent financing.

There are often third-party costs we do not control, even on smaller loans, such as appraisals, credit, and background checks. Commercial loans often have commitment fees to cover underwriting costs such as commercial appraisals, environmental reports, and background checks. Once a term sheet or Letter of Intent is accepted, the borrower can no longer shop the loan, and there is often a break-up fee if the borrower does not close, especially on commercial loans.

For most investment property loans, the appraisal must be ordered through the broker or lender so the lender can control independence and eligibility. Borrower- or owner-ordered appraisals are rarely accepted, and an existing appraisal may not be transferable to a new lender. Many lenders order through an appraisal management company (AMC) and may restrict which AMCs or individual appraisers they will accept. Appraisal fees are generally third-party costs and vary by property type, location, complexity, and whether the assignment is residential or commercial. For a real-world example of why the appraisal matters before acquisition, read An Appraisal Worth a Million Dollars.

Appraisers generally consider three approaches to value: the cost or replacement approach, the income approach, and the sales comparison approach. For an income-producing investment property, the income approach usually carries the most weight because investors are buying the property's income stream; comparable sales are then used to confirm that the income-based value makes sense. The cost approach can still matter, especially for newer or special-use properties, but it is often secondary for an established rental property. The main exception is a 1–4 unit property, especially a single-family home, when the business plan is to renovate and sell rather than hold for income. In that case, the sales comparison approach and expected resale value may carry more weight because the exit is a retail sale. The appraiser reconciles the applicable approaches rather than simply averaging them. For a real-world example of why valuation before acquisition matters, read An Appraisal Worth a Million Dollars.

A low appraisal can reduce loan proceeds, increase the cash required to close, or make a refinance or purchase unworkable at the requested leverage. On a purchase or rehab deal, however, a lower value can also protect the borrower from paying too much or relying on an after-repair value that does not support a reasonable profit. If the appraisal contains factual errors or misses stronger market evidence, it can be challenged through a reconsideration of value using corrected facts, better comparable sales, rent evidence, or other relevant support. The goal is not to force a higher number; it is to make sure the appraisal reflects the property's actual market value. For a real-world example of what a low appraisal can reveal, read An Appraisal Worth a Million Dollars.

LTV compares the loan amount to the property's current as-is value. Formula: Loan Amount ÷ Property Value × 100. A $700,000 loan on a $1,000,000 property is 70% LTV. On a purchase, many lenders use the lower of the purchase price or appraised as-is value; on a refinance, the appraised as-is value is typically the starting point. Lower LTV means more borrower equity and more lender cushion. LTV does not give credit for future rehab value.

LTC compares the loan amount to the actual project cost. Formula: Loan Amount ÷ Total Eligible Project Cost × 100. On a rehab purchase, cost commonly includes the purchase price plus eligible renovation costs; lender treatment of closing and soft costs varies. If the purchase price is $100,000 and rehab is $50,000, total cost is $150,000; a $120,000 loan is 80% LTC. LTC measures how much of the project cost the lender is financing and does not give the borrower credit for projected profit or future appreciation.

LTARV compares the total loan amount to the property's expected value after the planned rehab is complete. Formula: Loan Amount ÷ After-Repair Value × 100. A $140,000 loan on a $200,000 ARV is 70% LTARV. ARV is generally supported by an appraisal of the completed condition. LTARV is especially important in fix-and-flip and rehab lending because it limits debt relative to the expected exit value. A deal can be 100% LTC and still be only 70% LTARV if it is bought below market and the rehab creates enough value. When lenders apply LTV, LTC, and LTARV together, the most restrictive limit generally controls the maximum loan.

Not every hard or private money lender requires a credit pull. Some lenders and programs can underwrite without using a credit score, although they will still run a background check. When a lender does review credit, it is a fast proxy for financial responsibility and sponsor reliability, and it can affect leverage, pricing, and lender comfort even on an asset-backed loan. If credit is not required, other factors such as the property, leverage, experience, liquidity, and background become more important.

There isn't a single universal minimum. Many lenders like to see ~660+, but we can often find solutions below that — with the right structure, liquidity, and collateral story. We also have financing solutions that do not even run credit, though all will run a background check and recent defaults and bankruptcies will show and may affect eligibility.

Recourse loans allow the lender to pursue additional assets if collateral doesn't satisfy the debt. Non-Recourse is generally limited to the collateral (often with carveouts) and is more common on larger commercial executions. Non-Recourse defaults will still affect credit.