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Commercial Hard Money Loans in Fort Mill, South Carolina

Fort Mill, SC has 50 commercial private money lenders operating in the city. The mean loan issued to borrowers is approximately $337,500. Rates for private loans average around 10.0%. The average loan issued in the city has a term of 23 months. The average points charged on the loans is 3.4%. Lenders in Fort Mill average a 71% loan to value on their loans.

Loan Example 1

In order to acquire a new office building for her business, Cleo looks to XYZ Finance to fund her purchase with a commercial hard money loan since she cannot obtain a standard loan from a bank. The property costs $840,000. Based on a 70% loan-to-value (LTV) agreed to by the lender, the loan principle amount is $588,000. The additional $252,000 will be be paid by the borrower. The loan also includes a 2 year length, a 14% interest rate, interest only payments paid each month with a final payment when the note expires (with no pre-payment penalty), and a 5 point origination charge. Cleo will need to pay an origination fee of $29,400 and will then begin making the interest payments of $6,860 ($588,000 principle amount x 14% interest / 12 months). She can pay back the note whenever she wants to since there isn't a pre-payment penalty but she is responsible for the full principle amount when she eliminates the loan.

Loan Example 2

To facilitate her business, Molly must acquire a new building. After being denied a standard loan from her bank, she applies for a commercial private money loan from Axis Investment Group . The lender agrees to a 65% loan-to-value (LTV) on the transaction and the new property is listed for $800,000, so they will contribute $520,000 and Molly will pay the remaining $280,000. The lender also requires the following terms of the deal: 1) a 10% rate of interest, 2) a 2 year term with interest only payments monthly, 3) an origination fee of 2 points paid by the borrower at the close, and 4) no pre-payment penalty. Molly can eliminate the note at any point in time if she pays off the $520,000 of principle, but she will need to pay $4,333 /month interest payments ($520,000 principle x 10% interest rate / 12 months per year) in the interim, or up to the point the note expires. Because there is not a pre-payment penalty, the only other expense she would have is the $10,400 origination cost which she will pay at the closing.

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