Commercial Hard Money Loans in ,
A total of 50 results for commercial hard money lenders were found in Victorville, CA. The average note amount is $350,625. The average rate for private loans in Victorville is 8.6%. The mean note issued in this city has a length of 18 months. The average loan includes a 3.3 percent origination cost. Lenders in Victorville average a 73% LTV on their loans.
Loan Example 1
To facilitate his small business, Johnnie decides to buy a new retail space. After being turned down for conforming loan from his bank, he obtains a commercial private money loan from Red City Lending Group . The lender contracts to a 60% loan to value (LTV) on the sale and the building costs $1,080,000, so they will fund $648,000 and Johnnie will pay the remaining $432,000. Additionally, the lender will charge a 3 percent origination fee in addition to the 8%, 3 year term on the loan. They will not enforce a pre-payment penalty in the event that Johnnie pays off the note early. Under the conditions of the deal, Johnnie will pay an origination fee of $19,440 when the deal closes. He will also begin to make payments of $4,320 per month throughout the duration of the note and will pay off the principle at the expiration of the 3 year loan term. If he decides to pay off the note early, he may do so with no additional expense because there isn't a pre-payment penalty stipulated by the deal.
Loan Example 2
In order to acquire a new office building for his business, Dwight turns to XYZ Investments to fund his acquisition with a commercial hard money loan because he can't secure a commercial mortgage from a bank. The lender contracts to a 50% loan to value (LTV) on the sale and the building costs $500,000, so they will contribute $250,000 and Dwight will be responsible for the additional $250,000. The lender additionally requires the following terms of the deal: 1) a 9% interest rate, 2) a 3 year term with interest-only payments monthly, 3) an origination fee of 5 percent paid by Dwight when the deal closes, and 4) no penalty for pre-payment. According to the parameters of this loan, Dwight will have to pay origination points of $12,500 when the loan is closed. He will also start making payments of $1,875 monthly throughout the duration of the note and will repay the principle amount at the end of the 3 year term. If he decides to pay back the note before, he can do so without any additional cost because there isn't a pre-payment penalty associated with the note.