Commercial Hard Money Loans in ,
There are 50 commercial private money lenders offering loans in Chino, CA. The average loan issued to borrowers is approximately $350,625. The average rate for loans in Chino is 8.6%. 18 months is the average term for notes issued in this city. The average origination fee for loans is 3.3 points. Lenders offer on average a 73% loan to value (LTV) on hard money loans in Chino.
Loan Example 1
Teri owns a small business in Chino, CA and decides to acquire a new commercial building to run her operations. Because she cannot secure a standard loan from a bank, she looks to Redwood Funding for a commercial hard money loan. The property carries a price tag of $640,000. Teri will need to put 50% down, or $320,000, since the lender will only loan 50% of the purchase (the loan to value or "LTV"). This means the principle amount on the loan will be $320,000. The terms of the loan include a 1 year length, a 8% rate of interest, and a 2 origination fee paid by Teri when the transaction closes. Under the parameters of this deal, Teri will pay an origination fee of $6,400 when the deal closes. She will also begin to make payments of $2,133 / month throughout the duration of the note and will repay the principle amount at the end of the 1 year term. If she decides to pay back the note before, she can do so without any additional cost because there is no pre-payment penalty attached to the note.
Loan Example 2
To facilitate his small business, Tim must buy a new commercial building. After he is denied a conventional mortgage loan from his credit union, he secures a commercial hard money loan from North Side Finance . The lender agrees to a 75% loan-to-value (LTV) on the sale and the building costs $880,000, so they will contribute $660,000 and Tim will pay the remaining $220,000. In addition, the lender requires a 4 point origination fee to go along with the 13%, 2 year term on the deal. They will not charge a pre-payment penalty in case Tim pays off the note before it expires. Tim may eliminate the loan at any time by paying off the $660,000 in principle, but he will have to make $7,150 /month interest payments ($660,000 principle x 13% interest / 12 months per year) in the meantime, or until the note expires. Because there is no pre-payment penalty, the only other cost he would have is the $26,400 origination cost which he will pay when the loan closes.