About Castle Country Investments
Castle Country Investments is a Castle Rock, CO based private money lender. They provide loans in Northern California. Their lending focus is primarily on fix-and-flip loans. Their lending guidelines are versatile, including loan amounts starting from $50,000 with a maximum LTV of 70% and rates ranging between 12% and 15%. They do not require their borrowers to have a minimum credit rating to obtain a loan. They will consider varying loan scenarios but primarily focus on single family units and multi family residences.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: Northern California, CO
Lending Guidelines for Castle Country Investments
Below are the general loan guidelines published on the Castle Country Investments website. Please confirm all terms and rates directly with the lender.
Fix and Flip LoansLoan Amounts: $50,000 and up
Available Rates: 12% - 15%
Typical Terms: N/A
Points Charged: 3% - 5%
Max Loan-to-Value (LTV): 70%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: NO
Interest Only Loans: YES
Prepayment Penalties: NO
Minimum FICO Score: NO
Time to Close: N/A
The following loans are for education purposes only. They do not represent actual loans executed by Castle Country Investments.
Loan Example 1
Tony finds a condo in Acampo, CA to remodel and resell. Since he does not have enough cash available to acquire the $400,000 property outright, he decides to take out a fix and flip loan from Castle Country Investments. Since the lender agrees to a 55% loan to value, Tony will be required to put 45% down so the total amount of the loan will be $220,000. The terms of the deal also include a two point origination fee which will be paid at the closing and a 18 month, interest only note with a 9% interest rate.
Tony will need to bring $180,000 at closing (45% on the 55% loan to value), plus he will pay the $4,400 origination fee. After the loan is closed and Tony takes the project, he will have to begin making payments each month of $1,650 to Castle Country Investments ($220,000 principle x 9% / 12 months). At the expiration of the note, he sells the rehabed property for $580,000. After subtracting the $29,700 in interest payments ($1,650 multiplied times 18 months), the $4,400 origination fee, the $220,000 principle on the note, and the $180,000 he brought to the closing, he will make a gross profit of $145,900 ($580,000 price minus $434,100 in costs). This amount would then be reduced by any rehab costs paid by the borrow.
Loan Example 2
Castle Country Investments issues a loan to Jay for a remodeling project in Acampo, CA. The deal dictates the following:
$220,000 sales price
50% loan to value (LTV)
18 month term
11% rate of interest
5% origination fee
If Jay succeeds in his goal of a $308,000 sales price, the numbers of the project will be the following:
$308,000 sales price
- $110,000 loan principle (50% LTV)
- $110,000 down payment (50% on 50% LTV)
- $5,500 origination points (5% of the $110,000 principle amount)
- $18,150 interest payments (18 months x 11% interest)
= $64,350 total profit (does not include taxes or renovation costs)
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