Element Capital Lending

About Element Capital Lending

Element Capital Lending is a Colorado Springs, CO based hard money lender. They provide funding throughout the country. They provide lending solutions for a variety of situations and needs, including hard money loans for commercial properties, bridge loans, and short term fix and flip loans. They provide loan amounts ranging from $1,000,000 to $100,000,000 with a maximum LTV of 90%. They will make loans on most property types, including single family, multi-family, apartment buildings, office buildings, retail spaces, hotels, storage facilities, senior facilities, mixed use buildings, warehouse buildings, industrial facilities, medical facilities, and undeveloped land.

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

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

Areas Served: National

Lending Guidelines for Element Capital Lending

Below are the general loan guidelines published on the Element Capital Lending 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 Element Capital Lending.

Loan Example 1

Lee closes on a $230,000 renovation project in Des Moines, IA, using a fix and flip loan from Element Capital Lending. The lender agrees to write a note with a 50% loan-to-value (LTV) so they are willing to loan $115,000 on the property. The terms of the deal dictate a 11% note for 12 months. They also require a 5 point origination fee, which will also be paid upon closing.

Lee will need to contribute $115,000 to the closing (50% on the 50% LTV), plus she will need to pay the $5,750 origination fee. After the deal closes, she will need to pay Element Capital Lending $1,054 in monthly interest fees, or 11% multiplied times $115,000 divided by 12 months in a year. Lee's plan is to finish the remodel by the end of the 12 months and resell it for $310,500. If she succeeds she will collect a total profit of $62,100 ($310,500 sales price - $115,000 principle amount - $115,000 cash at closing - $5,750 origination fee - $12,650 in total interest paid.

Loan Example 2

Element Capital Lending makes a fix and flip loan to Ramon for a rehab project in Salem, OR. The loan includes the following:

$350,000 sales price
80% loan to value (LTV)
6 month term
9% interest rate
1% origination fee

After the renovation project is finished, if Ramon sells the house for $507,500, the outcome would be the following:

$507,500 sales price
- $280,000 principle on note (80% LTV)
- $70,000 down payment (20% on 80% LTV)
- $2,800 origination points (1% of the $280,000 principle)
- $12,600 interest payments (6 months x 9% interest)
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= $142,100 gross profit (does not include taxes or rehab costs)

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