About Certified Investments
Certified Investments is an asset-based lender in Pittsburgh, PA offering funding throughout Pittsburgh. Their focus is primarily on fix-and-flip hard money loans. Their lending parameters are flexible, including loans with a maximum LTV of 70%, rates ranging from 15%, and terms up to 1 year. They require borrowers to have a minimum FICO score of 675 to receive a loan. They primarily provide funding for single family and multi family.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: Pittsburgh
Fix and Flip LoansLoan Amounts: N/A
Available Rates: 15%
Typical Terms: 12 months
Points Charged: 10%
Max Loan-to-Value (LTV): 70%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: YES
Prepayment Penalties: NO
Minimum FICO Score: 675
Time to Close: N/A
Loan Example 1
Certified Investments makes a private money loan to Sean for a remodeling project in Pittsburgh, PA, on a house that is listed for $360,000. The loan-to-value (LTV) on the note is 85%. This means Sean will need to bring 15% of the sales price to the closing and the principle amount will be $306,000 on the note. The loan also consists of the following features: 1) a 18 month length, 2) a 14% interest-only note, and 3) a four point origination charge.
The borrower will have to bring a total of $32,400 upon closing to cover the $54,000 down payment plus the $12,240 origination fee. he will then pay $3,570 monthly to the lender. At the end of the note, he sells the renovated house for $522,000. After subtracting the $64,260 in interest expenses ($3,570 multiplied times 18 months), the $12,240 origination fee, the $306,000 principle amount on the note, and the $54,000 he contributed to the closing, he will earn a total profit of $85,500 ($522,000 price minus $436,500 in costs). This amount would be reduced by any building costs paid out of pocket.
Loan Example 2
Lesley takes out a fix and flip loan from Certified Investments in order to rehab a townhouse to flip in Pittsburgh, PA. The deal has the following terms:
a) A $370,000 purchase price, b) a 85% loan to value (LTV), c) a 6 month term, d) a 13% interest rate, and e) a 3% origination fee.
Assuming a $555,000 sales price after the 6 month term, the outcome for this deal would look like this:
$555,000 sales price
- $314,500 note principle (85% LTV)
- $55,500 cash paid at closing (15% on 85% LTV)
- $9,435 origination fee (3% of the $314,500 principle)
- $20,443 interest payments (6 months x 13% interest)
= $155,123 gross profit (doesn't include taxes or rehab costs)
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