About ABQ Owner Financing
Headquartered in Albuquerque, NM, ABQ Owner Financing is a hard money lender offering loans throughout Albuquerque and Rio Rancho. Their lending focus is mainly on rental property loans. They will consider various lending scenarios but primarily focus on single family residences.
Loan Types Offered: Investment Property Loans
Property Types Covered: Single Family
Areas Served: Albuquerque, Rio Rancho
Lending Guidelines for ABQ Owner Financing
Below are the general loan guidelines published on the ABQ Owner Financing website. Please confirm all terms and rates directly with the lender.
Investment Property LoansLoan Amounts: N/A
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): N/A
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: N/A
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: N/A
The following loans are for education purposes only. They do not represent actual loans executed by ABQ Owner Financing.
Loan Example 1
Tonya takes a private money loan from ABQ Owner Financing in order to remodel a condo to flip in Albuquerque, NM. The price of the property is $230,000. Since the lender sets a 80% loan to value, Tonya will be required to put 20% down so the principle amount of the note will be $184,000. The rate on the note is 8% for a term of 18 months and the company requires a two point origination fee at the closing. The interest payments are to be paid on a monthly basis and the principle amount will be returned after the property sells.
Accordingly, Tonya will need to contribute a $46,000 down payment plus pay a $3,680 origination fee. The monthly interest only payments will then total $1,227 to the lender. If Tonya sells the renovated house for $333,500 at the end of the 18 month term, her total profit (not including remodeling costs) would be $77,740. This is calculated by taking the purchase price ($333,500) and subtracting the original principle ($184,000), the origination fee ($3,680), the cash she brought to closing ($46,000), and the total interest expenses ($22,080).
Loan Example 2
Tony takes a private money loan from ABQ Owner Financing so he can rehab a townhome to re-sell in Albuquerque, NM. The deal has the following parameters:
$150,000 purchase price
60% loan-to-value (LTV)
6 month term
10% rate of interest
5% origination fee
Tony intends to sell the project when the note expires for $202,500. If he succeeds, the final numbers will be as follows:
$202,500 sales price
- $90,000 loan principle (60% LTV)
- $60,000 down payment (40% on 60% LTV)
- $4,500 origination points (5% of the $90,000 principle amount)
- $4,500 total interest paid (6 months x 10% interest)
= $43,500 gross profit (does not include taxes or renovation costs)
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