private equity lending

What is the process of private equity lending?

Through the course of extensive research, diligent underwriting, and partnering with trusted industry associates, we provide individuals with opportunities to grow capital with limited exposure.

  • We locate potential properties through our network of real estate investors, real estate agents, probate attorneys, CPAs, escrow and title companies, bulk buyers of distressed properties, and retail mortgage professionals located throughout California.

  • We originate loans after performing a stringent underwriting process, utilizing our experience in risk management, property evaluations, and instincts that have been developed over the past 15 years. We obtain title insurance and arrange escrow, schedule an independent property appraisal, confirming substantial equity in the property and meet with the Borrower.

When HCS Equity is confident about the potential of the opportunity, it is offered to Investors.

A traditional transaction follows this process:

  • The Investor agrees to fund the loan on a terms provided by HCS Equity.

  • A comprehensive set of legal loan documents is drawn.

  • The loan documents are signed with an independent notary.

  • The investor is named as the actual beneficiary on the loan documents, insuring their security on the property.

  • The loan is funded by the investor directly to the title company, securing their position on title. Title insurance provides proof of lien position for investors and that all property taxes and non-junior liens are paid off.

  • The escrow company balances out the file and provides a legal closing statement to all parties.

  • The investor is named as loss payee with hazard insurance company on property.

  • HCS Equity sets up the file with a servicing firm for receipt of investor’s monthly payments.

  • The investor is set up with secure web access to the servicing company to monitor borrowers payments.

  • HCS Equity monitors payments and insurance coverage for the life of loan.

  • In the event of non-payment, HCS Equity will coordinate the foreclosure process with a local foreclosure attorney.