Dividend America

About Dividend America

Based in Tempe, AZ, Dividend America is an asset-based lender providing loans across the country. They offer lending solutions for a variety of situations, including hard money refinancing, commercial hard money loans, and short term bridge loans. Their lending parameters are versatile, including terms between 12 months and 36 months, loans with a maximum LTV of 75%, and rates ranging between 8% and 12%. They make loans on various property types, including multi-family, apartment buildings, office units, retail storefronts, hotels/motels, storage facilities, senior housing communities, mixed use, undeveloped land, churches, warehouse buildings, industrial buildings, and medical offices.

Loan Types Offered: Commercial Hard Money Loans, Refinance / Cash Out Loans, Bridge Loans

Property Types Covered: Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Land, Church, Warehouse, Industrial, Medical

Areas Served: National

Lending Guidelines for Dividend America

Below are the general loan guidelines published on the Dividend America 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 Dividend America.

Loan Example 1

In order to purchase a new warehouse for her business, Carole turns to Dividend America to fund her acquisition with a commercial hard money loan since she is unable to obtain a conforming loan from a bank. The new building will cost $250,000. Based on a 65% loan to value (LTV) set by the lender, the loan principle amount will be $162,500. The additional $87,500 will be be funded by Carole. The deal also dictates a 6 month term, a 12% interest rate, interest-only payments paid monthly with a final payment when the note expires (without a pre-payment penalty), and a 5 point origination charge. Carole may eliminate the note at any point in time by paying off the $162,500 of principle, but she will be required to make $1,625 /month interest payments ($162,500 principle value x 12% interest / 12 months) in the interim, or until the loan expires. Since there is no pre-payment penalty, the only additional cost she would have is the $8,125 origination charge which she will pay at closing.

Loan Example 2

Gale finds a property in Baton Rouge, LA to renovate and sell. Because she does not have enough cash to buy the property outright, she takes a private money bridge loan from Dividend America with the following parameters:

a) A $190,000 purchase price, b) a 65% loan-to-value (LTV), c) a 18 month term, d) a 9% interest rate, and e) a 5% origination fee.

Once the renovation project is completed, if Gale sells the project for $247,000, the final numbers would be the following:

$247,000 sales price
- $123,500 loan principle (65% LTV)
- $66,500 down payment (35% on 65% LTV)
- $6,175 origination fee (5% of the $123,500 principle)
- $16,673 total interest paid (18 months x 9% interest)
-----------------------
= $34,153 total profit (does not include taxes or rehab costs)

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