COGO Capital

About COGO Capital

Based in Coeur d'Alene, IA, COGO Capital is an asset-based lender providing loans in 45 states throughout the US. They provide private commercial loans, fix-and-flip loans, and loans for investments properties. Their loan guidelines are flexible, including loans with a maximum LTV of 65%. They do not require borrowers to have a minimum credit rating to obtain a loan. The focus of their loans is for single family homes and multi-family units.

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

Property Types Covered: Single Family, Multi Family

Areas Served: AK, AL, AR, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MO, MS, MT, NC, ND, NE, NH, NJ, NM, NY, OH, OK, PA, RI, SC, TN, TX, UT, VA, WA, WI, WV, WY

Loan Example 1

COGO Capital makes a fix and flip loan to Gail for a renovation project in Houston, TX, on a house that costs $300,000. The terms of the loan include a 80% loan to value (LTV), so she must contribute 20% of the price as cash to closing, making the principle note amount $240,000. The terms of the loan dictate a 14% note for 6 months. They also stipulate a 2 point origination fee, that will also need to be paid when the property closes.

On top of the $4,800 origination fee, Gail will also fund $60,000 of the purchase with her own cash, or 20% of the purchase price. The lender will collect $2,800 in monthly interest from the Gail . This is calculated by taking the full note value of $240,000, multiplying that by the 14% interest rate, and then dividing that number by 12. Assuming she sells the remodeled project for $435,000 at the end of the 6 month term, her total profit (not accounting for remodeling costs) would be $113,400. This is calculated by taking the purchase price ($435,000) and subtracting the original principle ($240,000), the origination cost ($4,800), the cash she contributed to closing ($60,000), and the total interest payments ($16,800).

Loan Example 2

Jorge takes a fix and flip loan from COGO Capital in order to remodel a house to resell in Houston, TX. The deal has the following terms:

$210,000 purchase price
80% loan to value (LTV)
18 month term
13% interest rate
2% origination fee

Jorge plans to list the house at the end of the term for $304,500. If he achieves this goal, the final numbers will be as follows:

$304,500 sales price
- $168,000 loan principle (80% LTV)
- $42,000 down payment (20% on 80% LTV)
- $3,360 origination fee (2% of the $168,000 principle)
- $32,760 total interest paid (18 months x 13% interest)
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= $58,380 gross profit (does not include taxes or rehab costs)

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