About Business Financial Consultants of Houston
Business Financial Consultants of Houston is a Houston, TX based private money lender. They provide funding in Houston. Their lending focus is primarily on hard money loans for commercial properties. They will make loans on all of the following property types: multi-family, apartments, offices, retail spaces, hotels, storage facilities, senior facilities, mixed use, warehouse spaces, industrial facilities, and medical offices.
Loan Types Offered: Commercial Hard Money Loans
Property Types Covered: Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical
Areas Served: Houston
Lending Guidelines for Business Financial Consultants of Houston
Below are the general loan guidelines published on the Business Financial Consultants of Houston website. Please confirm all terms and rates directly with the lender.
Commercial Hard Money 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 Business Financial Consultants of Houston.
Loan Example 1
To accommodate his business, Donald must acquire a new office building. After being turned down for standard loan from his local bank, he obtains a commercial private money loan from Business Financial Consultants of Houston. The new property is listed for $280,000. Because there is a 70% loan to value (LTV) stipulated by the lender, the principle is $196,000. The remaining $84,000 will be be funded by Donald. The lender also specifies the following terms of the loan: 1) a 13% rate of interest, 2) a 12 month length with interest-only payments monthly, 3) an origination fee of 1 points paid by Donald at closing, and 4) no penalty for pre-payment. By the terms of the deal, Donald will pay an origination charge of $1,960 at closing (1% x $196,000 principle) and will then begin making payments of $2,123 monthly ($196,000 principle x 13% interest / 12 months in a year). Finally, he will make a final payment of the $196,000 principle upon expiration of the note, or sooner if he decides.
Loan Example 2
Freddie takes out a loan from Business Financial Consultants of Houston in order to remodel a property to flip in Houston, TX. The loan has the following terms:
a) A $150,000 purchase price, b) a 80% loan-to-value (LTV), c) a 6 month term, d) a 14% interest rate, and e) a 4% origination fee.
Assuming a $210,000 sales price at the end of the 6 month term, the final numbers for this project would look like the following:
$210,000 sales price
- $120,000 principle on note (80% LTV)
- $30,000 cash paid at closing (20% on 80% LTV)
- $4,800 origination points (4% of the $120,000 principle)
- $8,400 interest payments (6 months x 14% interest)
= $46,800 gross profit (doesn't include taxes or rehab costs)
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