FAQ — Financing Programs & Process | JB Capital Group

Question 1

What does JB Capital Group do?

Accepted Answer

JB Capital Group is a capital advisory firm — not a lender. We work with borrowers to identify, structure, and arrange financing through our network of banks, private lenders, institutional lenders, and specialty finance sources. We have been active in commercial real estate and business finance for more than 38 years.

Question 2

Is JB Capital Group a lender?

Accepted Answer

No. JB Capital Group is not a lender. We are a capital advisory and loan brokerage firm. All loans are arranged through third-party lenders and are subject to lender underwriting, eligibility, and approval.

Question 3

What types of financing do you arrange?

Accepted Answer

We arrange hard money loans, fix & flip loans, commercial bridge loans, blanket loans, SBA loans, DSCR loans, construction loans, builder's risk insurance, and fast business funding for qualified small businesses.

Question 4

How do I get started?

Accepted Answer

You can submit a loan scenario through our Loan Scenario form, complete the Apply Now multi-step application, or call our office directly at (516) 779-1967 to speak with a capital advisor.

Question 5

How quickly can you respond to an inquiry?

Accepted Answer

Our office typically responds to inquiries within 24 hours on business days. For time-sensitive deals, we encourage you to call us directly.

Question 6

What is a hard money loan?

Accepted Answer

A hard money loan is an asset-based loan secured by real property. Approval is primarily based on the value of the collateral rather than the borrower's credit profile. These loans are typically short-term (6–24 months) and are used for acquisitions, refinances, or bridge situations where speed and flexibility are priorities.

Question 7

What loan-to-value ratios are available on hard money loans?

Accepted Answer

Most hard money programs offer up to 65–75% LTV on the as-is value, and up to 65–70% of the after-repair value (ARV) on fix & flip deals. Exact LTV depends on the property type, location, and lender.

Question 8

How fast can a hard money loan close?

Accepted Answer

Many hard money loans can close in 7–14 business days for straightforward deals. More complex transactions may take 2–4 weeks. Speed depends on the lender, the property, and how quickly documentation is provided.

Question 9

What is a commercial bridge loan?

Accepted Answer

A commercial bridge loan is a short-term loan (typically 6–36 months) used to bridge the gap between an immediate financing need and a long-term solution. Common uses include acquiring a property before permanent financing is in place, repositioning a value-add asset, or bridging out of maturing debt.

Question 10

What is a fix & flip loan?

Accepted Answer

A fix & flip loan is a short-term loan designed for real estate investors who purchase, renovate, and resell residential properties. These loans typically cover both the acquisition and the rehab budget, with draws released as work is completed.

Question 11

Do I need prior experience to qualify for a fix & flip loan?

Accepted Answer

Some lenders require prior experience, while others will work with first-time investors on smaller projects. Experienced investors typically qualify for higher leverage and better terms. We work with lenders across the spectrum.

Question 12

How are rehab draws handled?

Accepted Answer

Rehab funds are typically held in escrow and released in draws as construction milestones are completed and verified by an inspector. Draw schedules vary by lender.

Question 13

What is an SBA loan?

Accepted Answer

SBA loans are government-backed loans administered through participating banks and lenders. The SBA 7(a) program is the most common and can be used for working capital, equipment, real estate, and business acquisition. SBA 504 loans are used for owner-occupied commercial real estate and major equipment.

Question 14

What are the general requirements for an SBA loan?

Accepted Answer

SBA loans generally require a credit score of 650+, at least 2 years in business, demonstrated ability to repay, and a down payment (typically 10–30% depending on the program). Full documentation is required.

Question 15

What is a DSCR loan?

Accepted Answer

A DSCR (Debt Service Coverage Ratio) loan qualifies the borrower based on the income generated by the property rather than personal income. If the property's rental income covers the debt service, the loan may qualify — making it ideal for real estate investors who prefer not to use personal income documentation.

Question 16

What DSCR ratio is typically required?

Accepted Answer

Most DSCR programs require a minimum ratio of 1.0x to 1.25x, meaning the property's income must cover at least 100–125% of the monthly debt payment. Some programs allow below 1.0x DSCR with compensating factors.

Question 17

What is a blanket loan?

Accepted Answer

A blanket loan allows a real estate investor to finance multiple properties under a single mortgage. Instead of managing separate loans for each property, you consolidate your portfolio into one streamlined financing solution.

Question 18

Can I sell one property without paying off the entire blanket loan?

Accepted Answer

Yes — most blanket loans include a release clause that allows you to sell or refinance individual properties without triggering a full payoff of the loan. Release terms vary by lender.

Question 19

How many properties are required for a blanket loan?

Accepted Answer

Most blanket loan programs require a minimum of 2 properties, though some lenders prefer 5 or more. Portfolio size, property types, and combined value all factor into eligibility.

Question 20

What is a construction loan?

Accepted Answer

A construction loan is a short-term loan used to finance the building of a new structure or a major renovation. Funds are disbursed in draws as construction progresses. Upon completion, the loan is typically refinanced into permanent financing.

Question 21

What is Builder's Risk Insurance?

Accepted Answer

Builder's Risk Insurance is a specialized property insurance policy that covers a building under construction against damage from fire, weather, vandalism, and other covered perils. It is typically required by lenders on construction loans and protects the project from groundbreaking through completion.

Question 22

Is Builder's Risk Insurance required on construction loans?

Accepted Answer

Yes — virtually all construction lenders require Builder's Risk Insurance as a condition of the loan. We can help arrange coverage through our insurance sources.

Question 23

What is the Fast Business Funding program?

Accepted Answer

The Fast Business Funding program is designed to help qualified small businesses access structured business financing — not merchant cash advances, not daily payment loans, and not high-cost short-term cash advances. Funding up to $100,000 may be available with estimated terms of approximately 5–6 years, rates generally around 9–11% for qualified borrowers, and monthly payments.

Question 24

What types of businesses may qualify?

Accepted Answer

Restaurants, contractors, medical practices, pharmacies, retail stores, service businesses, wholesalers, import/export businesses, professional practices, and other established small businesses with documented cash flow may be candidates.

Question 25

What documents are typically needed?

Accepted Answer

Initial documents commonly needed include the last year's business tax return, last year's personal tax return, a personal financial statement, a schedule of business debt, and business formation documents if requested.

Question 26

Is there an engagement fee?

Accepted Answer

Yes. A consulting and packaging engagement fee applies. The fee covers eligibility review, credit evaluation, document review, loan packaging, lender matching, and submission assistance. Full fee terms are disclosed in the DocuSign agreement before any payment is made.

Question 27

How fast is the approval and closing process?

Accepted Answer

Qualified candidates may obtain approval in 2–3 business days and close in less than 7 days.

Question 28

Does JB Capital Group charge upfront fees?

Accepted Answer

Fee structures vary by program. For the Fast Business Funding program, an engagement fee applies and is disclosed in full before any payment is made. For real estate and commercial loans, fees are typically disclosed at the time of engagement. We do not collect fees without full disclosure of terms.

Question 29

What happens after I submit a loan scenario?

Accepted Answer

A capital advisor will review your scenario and reach out within 24 hours to discuss your options, preliminary terms, and next steps. If the deal appears suitable, we will outline the documentation needed and the path forward.

Question 30

Does submitting a form obligate me to proceed?

Accepted Answer

No. Submitting an inquiry, loan scenario, or prequalification form does not constitute a loan application or commitment, and does not obligate you to proceed in any way.

Frequently Asked Questions

General

Hard Money & Bridge Loans

Fix & Flip

SBA & DSCR Loans

Blanket Loans

Construction & Builder's Risk

Fast Business Funding

Process & Fees

Speak With a Capital Advisor

Frequently Asked Questions — JB Capital Group