Arcstone Financial

About Arcstone Financial

Arcstone Financial is a Los Angeles, CA based hard money lender who offers loans in California. They offer lending solutions for many different situations, including rental property loans, short term fix and flip loans, and commercial hard money loans. Their lending guidelines are versatile, including rates starting at 6.75% . They offer loans on most property types, including single family homes, multi-family, apartments, offices, retail units, hotels and motels, storage buildings, senior housing facilities, mixed use, churches, warehouse spaces, and industrial buildings.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Church, Warehouse, Industrial

Areas Served: CA

Licenses: License # 01468445, NMLS #: 344236

Lending Guidelines for Arcstone Financial

Below are the general loan guidelines published on the Arcstone Financial website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Arcstone Financial.

Loan Example 1

Arcstone Financial makes a fix-and-flip loan to Chad for a remodeling project in Los Angeles, CA, on a house that is listed for $400,000. Since the lender sets a 85% loan-to-value, Chad will be required to put 15% down and the principle amount of the loan will be $340,000. The parameters of the loan dictate a 14% note for 12 months. They also require a 5 point origination fee, which will also be paid at closing.

The borrower will have to contribute a total of $32,400 upon closing to cover the $60,000 down payment plus the $17,000 origination fee. The monthly interest only payments will then total $3,967 to the lender. Chad's intention is to finish the rehab within the 12 months and resell it for $520,000. If he succeeds he will earn a profit of $55,400 ($520,000 sales price - $340,000 principle amount - $60,000 down payment - $17,000 origination points - $47,600 in total interest paid.

Loan Example 2

Ricardo takes out a hard money loan from Arcstone Financial in order to rehab a townhome to resell in Los Angeles, CA. The deal has the following parameters:

$330,000 sales price
55% loan-to-value (LTV)
12 month term
13% interest rate
2% origination fee

If Ricardo succeeds in his goal of a $478,500 sales price, the numbers of the deal would be the following:

$478,500 sales price
- $181,500 loan principle (55% LTV)
- $148,500 down payment (45% on 55% LTV)
- $3,630 origination fee (2% of the $181,500 principle)
- $23,595 total interest paid (12 months x 13% interest)
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= $121,275 total profit (does not include taxes or renovation costs)

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