About CBC Realty Investments
CBC Realty Investments is a Newburyport, MA based private lender offering loans throughout Boston. Their focus is mainly on fix-and-flip hard money loans. They issue terms between 6 months and 18 months, rates ranging between 8% and 10%, and loan amounts ranging from $200,000 to $3,000,000 with a maximum LTV of 80%. They primarily make funding on single family homes and multi-family units.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: Boston
Lending Guidelines for CBC Realty Investments
Below are the general loan guidelines published on the CBC Realty Investments website. Please confirm all terms and rates directly with the lender.
Fix and Flip LoansLoan Amounts: $200,000 - $3,000,000
Available Rates: 8% - 10%
Typical Terms: 6 months - 18 months
Points Charged: 2% - 3%
Max Loan-to-Value (LTV): 80%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: YES
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: 1 Week
The following loans are for education purposes only. They do not represent actual loans executed by CBC Realty Investments.
Loan Example 1
Bianca is a real estate investor in Boston, MA. She discovers a run-down property for sale and wants to rehab it and flip it for a profit. The house has a cost of $230,000 but she doesn't have the full amount so she takes a private money loan with CBC Realty Investments. As the lender agrees to a 50% loan-to-value, Bianca will have to put 50% down so the amount of the note will be $115,000. The terms of the loan also stipulate a four percent origination fee that is to be paid at the closing and a 6 month, interest only note with a 13% rate of interest.
Bianca will need to bring $115,000 at closing (50% on the 50% loan to value), plus she will pay the $4,600 origination fee. CBC Realty Investments will collect $1,246 in monthly interest payments from the Bianca . This is computed by taking the total note value of $115,000, multiplying that by the 13% rate of interest, and then dividing that amount by 12. Assuming Bianca sells the rehabed project for $276,000 at the end of the 6 month term, her total profit (not accounting for remodeling expenses) would be $33,925. This is computed by taking the purchase price ($276,000) and subtracting the principle ($115,000), the origination cost ($4,600), the cash she brought to closing ($115,000), and the total interest payments ($7,475).
Loan Example 2
Cherie locates a duplex in Boston, MA to rehab and sell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from CBC Realty Investments with the following parameters:
a) A $310,000 purchase price, b) a 65% loan-to-value (LTV), c) a 12 month term, d) a 9% interest rate, and e) a 2% origination fee.
After the renovation project is completed, if Cherie sells the house for $434,000, the final numbers would be the following:
$434,000 sales price
- $201,500 principle on note (65% LTV)
- $108,500 down payment (35% on 65% LTV)
- $4,030 origination points (2% of the $201,500 principle amount)
- $18,135 interest payments (12 months x 9% interest)
= $101,835 gross profit (does not include taxes or renovation costs)
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