We finance 1-4 unit investment properties, multi-family, mixed use, and commercial properties located in eastern Pennsylvania and western New Jersey.
Rates for 1-4 unit properties range between 12%-14% depending on experience, credit score, financial condition, loan amount, loan to value ratio (LTV) of the transaction, and term requested.
Rates for commercial bridge loans and mixed use property types range between 10%-13%.
All loans require monthly interest only payments.
We do not charge any pre-payment penalties on any of our loans.
Non-owner occupied properties including single family, 1-4 multi-units and commercial or mixed use properties.
Eastern Pennsylvania and western New Jersey
Minimum loan amount $50,000
Maximum loan amount $2,500,000
LOAN TO VALUE
Maximum LTV of 65% based on the After Rehab Value (ARV) for rehab projects.
Maximum LTV of 70% for multi-unit residential properties, mixed use properties and commercial properties.
LENDING PROGRAMS AVAILABLE FOR
New Construction and other commercial purposes
Initial term 6 – 12 months.
Longer terms may be available upon request up to 36 months.
Finance purchase and/or rehab
Refinance existing debt and cash out refinances
Extensions beyond the initial term may be granted for an additional fee.
What costs will the borrower incur?
· Appraisal fee – $400-$450, depending on property
· Inspection fee – $150 per inspection for rehab projects
· Documentation fee – none
· Underwriting fee- none
· Escrow fee – none
· Additional costs at settlement for title insurance and title agent fees, consult your title company
TYPES OF BORROWING ENTITIES
We lend to individuals, LLC, LLP, partnerships, corporations. No seasoning is required. Personal guarantees or cosigners may be required.
We will consider the use of one or more properties including your personal residence to structure a loan, which best achieves your goals.
CONSUMER PURPOSE LENDING
We DO NOT provide any type of consumer purpose lending.
Here’s a Typical Transaction:
A borrower finds a great opportunity to purchase a single-family property for $145,000, which is in need of renovation. Borrower estimates, based on comparable sales in the area, that the property would be worth $240,000 if it were completely rehabbed. The borrower’s contractor estimates the cost of the rehab will be about $35,000. The borrower has to settle on the property in 30 days, but has been turned down by the bank since banks are not interested in financing vacant properties in need of rehab on short term loans.
Instead, borrower obtains a private loan for $156,000 on the After Rehab Value (ARV) based on an “as complete” appraisal from an independent appraiser. The borrower gets a loan for $156,000 to purchase and rehab the property. At settlement, the borrower purchases the property for $145,000 of which $121,000 is provided by the private loan and $35,000 is held in escrow by the private lending company for the rehab. As the rehab progresses the work is inspected and funds advanced based on a pre-arranged draw schedule with the contractor.
If the borrower plans to sell the property, borrower pays off the loan upon the sale. If borrower plans to retain the property as a rental unit, borrower will refinance the property and obtain a long-term conventional mortgage. Banks are much more likely to refinance an existing mortgage on a rehabbed property with a tenant paying the mortgage.