CRE Finance

About CRE Finance

Headquartered in Eatontown, NJ, CRE Finance is a private lender providing funding all throughout the US. Their lending focus is mainly on commercial loans. They provide loans on the following types of properties: multi family, apartment buildings, offices, retail units, and industrial facilities.

Loan Types Offered: Commercial Hard Money Loans

Property Types Covered: Multi Family, Apartment, Office, Retail, Industrial

Areas Served: National

Lending Guidelines for CRE Finance

Below are the general loan guidelines published on the CRE Finance website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by CRE Finance.

Loan Example 1

In order to purchase a new building for her business, Marta looks to CRE Finance to fund her acquisition with a commercial private money loan because she cannot obtain a standard loan from a bank. The price of the new building is $340,000 and the lending company agrees to contribute 55% of the cost (the loan to value / "LTV"), or $187,000. The remaining $153,000 will need to be contributed by the borrower when the loan closes. The lender additionally lays out the following terms of the transaction: 1) a 13% interest rate, 2) a 18 month length with interest-only payments to be paid monthly, 3) an origination fee of 1 percent paid by Marta at the close, and 4) no fees for pre-payment. Marta will be required to pay an origination fee of $1,870 and will then begin to make the monthly payments of $2,026 ($187,000 principle amount x 13% interest rate / 12 months per year). She may re-pay the note early if she chooses because there is no pre-payment penalty but she is responsible for the principle whenever she eliminates the loan.

Loan Example 2

Carl finds a townhouse in Salem, OR to remodel and re-sell. Since he does not have enough cash to buy the property outright, he takes a hard money loan from CRE Finance with the following parameters:

$280,000 sales price
85% loan-to-value (LTV)
18 month term
13% rate of interest
1% origination fee

Carl intends to list the project when the note expires for $392,000. If he succeeds, the final numbers would be the following:

$392,000 sales price
- $238,000 loan principle (85% LTV)
- $42,000 cash paid at closing (15% on 85% LTV)
- $2,380 origination fee (1% of the $238,000 principle amount)
- $46,410 total interest paid (18 months x 13% interest)
-----------------------
= $63,210 total profit (does not include taxes or renovation costs)

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