Question 1

What is a private lender and how is it different from a bank?

Accepted Answer

A private lender like Red Star uses its own capital — not depositor funds — to make loans. That means we set our own criteria, move on our own timeline, and can approve deals that banks won't touch. We're faster, more flexible, and we actually understand real estate investing.

Question 2

What states do you lend in?

Accepted Answer

We are a Florida-focused private lender. All of our loans are secured by Florida real estate. We know the market deeply — from the Panhandle to the Keys — and we don't lend outside the state.

Question 3

How do I get started?

Accepted Answer

Call or text us directly, or fill out the application on our Apply page. We'll ask a few questions about the property and your goals, then give you a preliminary term sheet — usually within 24 hours.

Question 4

Do I need a real estate attorney?

Accepted Answer

Yes. All closings require a licensed Florida real estate attorney. We can refer you to attorneys we work with regularly if you don't have one.

Question 5

What credit score do I need?

Accepted Answer

We are asset-based lenders, which means the property and deal structure matter far more than your credit score. We work with borrowers across a wide range of credit profiles. A score below 600 may require additional equity or a stronger deal, but it won't automatically disqualify you.

Question 6

Do you require income verification?

Accepted Answer

For most of our loan products, we do not require traditional income documentation like W-2s or tax returns. We underwrite based on the asset — the property's value, your equity, and the exit strategy.

Question 7

What is the minimum loan amount?

Accepted Answer

Our minimum loan amount is $100,000. Most of our loans fall between $250,000 and $5,000,000, though we consider larger deals on a case-by-case basis.

Question 8

Can I borrow as an LLC or corporation?

Accepted Answer

Yes, and we encourage it. We regularly lend to LLCs, corporations, and other business entities. Borrowing through an entity is standard practice for real estate investors and we're fully set up to accommodate it.

Question 9

How fast can you close?

Accepted Answer

Most of our loans close in 7–14 business days from a completed application. Bridge loans and HELOC draws can sometimes close faster. The biggest factor is how quickly you can provide the property information and any required documentation.

Question 10

What happens after I apply?

Accepted Answer

After you submit an application, we review it within 48 hours and reach out to discuss the deal. If it's a fit, we issue a term sheet. Once you accept, we order an appraisal or BPO, complete underwriting, and schedule closing.

Question 11

What documents will I need to provide?

Accepted Answer

Typically: a completed application, property information (address, purchase contract or ownership docs), a brief description of your exit strategy, and a government-issued ID. We may request additional items depending on the loan type, but we keep it lean.

Question 12

Do you charge application fees?

Accepted Answer

We do not charge upfront application fees. Fees are collected at closing and are clearly disclosed in your term sheet before you commit to anything.

Question 13

What interest rates do you charge?

Accepted Answer

Our rates vary by loan type, LTV, and deal specifics. Land loans start around 10–13%, bridge loans 9–12%, HELOCs 9–11%, and construction loans 10–13%. We provide exact rates in your term sheet after reviewing the deal.

Question 14

Are your loans interest-only?

Accepted Answer

Most of our short-term products (bridge, construction) are structured as interest-only during the loan term, with the principal due at maturity. HELOC draws are also interest-only during the draw period. Land loans may be fully amortizing or interest-only depending on the structure.

Question 15

What are your loan terms?

Accepted Answer

Bridge loans: 6–24 months. Land loans: 12–36 months. Construction loans: 12–24 months. HELOCs: 12–36 month draw period. Extensions are available in most cases with advance notice.

Question 16

Are there prepayment penalties?

Accepted Answer

Some of our loan products have a minimum interest period — typically 3–6 months — meaning you'd owe interest for that period even if you pay off early. Full prepayment penalty terms are always disclosed in your term sheet upfront.

Question 17

What areas of Florida do you lend in?

Accepted Answer

We lend statewide across Florida — Miami-Dade, Broward, Palm Beach, Orlando, Tampa, Jacksonville, Sarasota, Naples, Fort Myers, the Space Coast, the Panhandle, and everywhere in between. If the property is in Florida, we'll look at it.

Question 18

Do you lend on rural or agricultural land?

Accepted Answer

Yes. We have significant experience with raw land, agricultural parcels, and rural properties in Florida. These deals require a clear exit strategy and strong equity position, but we fund them regularly.

Question 19

Do you lend on properties in flood zones?

Accepted Answer

We do lend on properties in FEMA flood zones, but we require flood insurance as a condition of the loan. Flood zone designation affects our LTV calculation and may impact your rate.

Question 20

Can you fund a deal that closes in less than a week?

Accepted Answer

In some cases, yes — particularly for repeat borrowers or straightforward bridge loans where we already know the asset. Call us directly to discuss your timeline. We'll tell you honestly whether it's achievable.

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