About Commercial Mortgage Depot
Commercial Mortgage Depot is a Clifton, NJ based private money lender. They offer funding throughout New Jersey and New York. Their focus is mainly on commercial loans. They provide loans on numerous property types, including single family units, multi family residences, apartment buildings, office units, mixed use spaces, retail units, warehouses, storage facilities, and industrial buildings.Visit Website
Loan Types Offered: Commercial Hard Money Loans
Property Types Covered: Single Family, Multi Family, Apartment, Office, Mixed Use, Retail, Warehouse, Storage, Industrial
Areas Served: NJ, NY
Lending Guidelines for Commercial Mortgage Depot
Below are the general loan guidelines published on the Commercial Mortgage Depot 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 Commercial Mortgage Depot.
Loan Example 1
Commercial Mortgage Depot makes a private money loan to Nora for the acquisition of a new office building after she is turned down for a conforming loan by her credit union because she has a subpar credit rating. The price of the building is $220,000 and the lending company agrees to contribute 85% of the cost (the loan to value / "LTV"), or $187,000. The other $33,000 will need to be funded by the borrower when the transaction closes. In addition, the lender will collect a 5 point origination fee along with the 13%, 18 month term on the note. They agree to not charge a pre-payment penalty in case Nora pays off the loan before expiration. Nora will have to pay an origination fee of $9,350 and will then start to make the interest payments of $2,026 ($187,000 principle x 13% interest rate / 12 months). She can repay the note whenever she chooses because there isn't a pre-payment penalty but she will be responsible for the full principle when she concludes the loan.
Loan Example 2
Deana locates a townhouse in Brooklyn, NY to renovate and re-sell. Since she does not have enough cash to buy the property outright, she takes a hard money loan from Commercial Mortgage Depot with the following parameters:
a) A $400,000 sales price, b) a 50% loan to value (LTV), c) a 18 month term, d) a 8% interest rate, and e) a 4% origination fee.
Deana plans to list the project at the end of the term for $500,000. If she achieves this goal, the deal numbers will be as follows:
$500,000 sales price
- $200,000 principle on note (50% LTV)
- $200,000 down payment (50% on 50% LTV)
- $8,000 origination points (4% of the $200,000 principle amount)
- $24,000 interest payments (18 months x 8% interest)
= $68,000 gross profit (does not include taxes or renovation costs)
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