Barnett Capital LTD

About Barnett Capital LTD

Headquartered in Northbrook, IL, Barnett Capital LTD is a hard money lender offering loans throughout the US. They offer loans for a variety of scenarios, including commercial loans, hard money bridge loans, short term fix and flip loans, and rental property loans. Their lending parameters are versatile, including terms between 3 months and 18 months and loan amounts ranging from $1,000,000 to $50,000,000. Their loan guidelines do not require a minimum FICO score. They make loans on many property types, including single family, multi-family, apartments, office buildings, retail spaces, and mixed use spaces.

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

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Mixed Use

Areas Served: National

Lending Guidelines for Barnett Capital LTD

Below are the general loan guidelines published on the Barnett Capital LTD 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 Barnett Capital LTD.

Loan Example 1

Rafael is an investor in Corpus Christi, TX. He discovers a run-down property and wants to rehab it and sell it for a profit. The property has a cost of $370,000 but he does not have the full amount so he takes out a fix-and-flip loan with Barnett Capital LTD. The loan-to-value (LTV) on the note is 85%. This means Rafael will need to bring 15% of the purchase price to the closing and the principle amount will be $314,500 on the loan. The terms of the loan also stipulate a two percent origination fee which is to be paid at the closing and a 18 month, interest-only note with a 11% interest rate.

The borrower will need to bring a total of $32,400 upon closing to pay the $55,500 down payment plus the $6,290 origination fee. Once the loan closes, he will have to pay the lender $2,883 in monthly interest payments, or 11% multiplied by $314,500 divided by 12 months in a year. Rafael's intention is to finish the house within the 18 months and sell it for $555,000. If he succeeds he will collect a total profit of $126,818 ($555,000 sales price - $314,500 principle amount - $55,500 cash at closing - $6,290 origination fee - $51,893 in total interest paid.

Loan Example 2

Toni is a an investor in Austin, TX. She buys an older townhouse for a renovation project and obtains a private money loan from Barnett Capital LTD with the following features:

$400,000 purchase price
60% loan to value (LTV)
12 month term
8% interest rate
2% origination fee

If Toni achieves her goal of a $560,000 sales price, the outcome of the deal will be the following:

$560,000 sales price
- $240,000 principle on note (60% LTV)
- $160,000 down payment (40% on 60% LTV)
- $4,800 origination points (2% of the $240,000 principle amount)
- $19,200 interest payments (12 months x 8% interest)
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= $136,000 total profit (does not include taxes or rehab costs)

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