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Commercial Hard Money Loans in Kingman, Arizona

Kingman, AZ has 50 commercial private money lenders in the city. In this city, the average amount loaned is $405,834. Interest rates for hard money loans average 11.2%. The typical length offered for loans is 42 months. The average origination percentage added to loans is 2.6%. 75% is the typical loan to value (LTV) offered for offered by lenders in Kingman.

Loan Example 1

In order to buy a new office building for her business, Gail turns to East Star Lending to fund her purchase with a commercial private money loan because she cannot secure a conforming loan from a bank. The property costs $500,000. Based on a 60% loan to value (LTV) stipulated by the lender, the loan principle amount will be $300,000. The remaining $200,000 will be be funded by the borrower. The lender also specifies the following terms to the loan: 1) a 8% interest rate, 2) a 5 year length with interest-only payments monthly, 3) an origination fee of 3 percent paid by the borrower when the deal closes, and 4) no penalty for pre-payment. By the terms of the deal, Gail will have to pay an origination fee of $9,000 at the close (3% x $300,000 principle amount) and will then begin making payments of $2,000 per month ($300,000 principle amount x 8% interest / 12 months). Finally, she will make a final payment of the $300,000 principle amount upon expiration of the loan, or before if she chooses.

Loan Example 2

Clifford is a small business owner in Kingman, AZ. He wants to purchase a new commercial building for his business but he is not able to get a commercial mortgage from his bank because of his subpar credit rating. He looks to Blue Door Lending Company for a commercial private money loan so he can fund the acquisition. The cost of the new property is $1,330,000 and the lending company agrees to fund 85% of the price (the loan to value / "LTV"), or $1,130,500. The remaining $199,500 will have to be funded by the borrower when the sale is closed. The deal also includes a 1 year length, a 13% rate of interest, interest-only payments made each month with a balloon payment at the end of the note (without a pre-payment penalty), and a 5 point origination charge. Clifford may eliminate the note at any point by paying off the $1,130,500 in principle, however, he will be required to pay $12,247 /month interest payments ($1,130,500 principle amount x 13% interest / 12 months in a year) in the meantime, or until the note expires. Since there is no pre-payment penalty, the only other expense he would have is the $56,525 origination charge which he will contribute at the close.

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Capital Fund 1

14555 N Scottsdale Rd, Suite 200

Scottsdale, AZ 85254

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Capital Fund 1 is a Scottsdale, AZ based hard money lender who offers funding in Arizona. They provide lending solutions for a variety of situations, including new construction loans, commercial loans, refinancing, investment property loans, short term fix and ...

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