Frias Financial

About Frias Financial

Frias Financial is a hard money lender in Boca Raton, FL providing loans throughout the US. They offer loans for a variety of situations and needs, including rental property loans, fix and flip loans, commercial loans, and hard money construction loans. Their lending parameters are versatile, including rates ranging between 8% and 12%, loan amounts ranging from $500,000 to $100,000,000 with a maximum LTV of 65%, and terms between 12 months and 36 months. They will make loans on all of the following types of properties: single family units, multi-family units, apartments, office units, retail units, hotels, storage buildings, senior living communities, mixed use buildings, undeveloped land, churches, and warehouse spaces.

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

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

Areas Served: National

Lending Guidelines for Frias Financial

Below are the general loan guidelines published on the Frias Financial 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 Frias Financial.

Loan Example 1

Alan finds a house in Chicago, IL to flip and resell. Since he doesn't have enough cash available to acquire the $400,000 project outright, he decides to take out a fix and flip loan from Frias Financial. The terms of the deal include a 55% loan to value (LTV), so he must contribute 45% of the price as cash to closing, which makes the principle loan amount $220,000. The terms of the deal also stipulate a two point origination fee that is to be paid at the closing and a 18 month, interest only note with a 12% rate of interest.

Accordingly, the borrower will need to contribute a $180,000 down payment in addition to paying a $4,400 origination fee. Frias Financial will collect $2,200 in monthly interest payments from the Alan. This is calculated by taking the total loan amount of $220,000, multiplying by the 12% rate of interest, and then dividing that number by 12. Alan's plan is to complete the house within the 18 months and resell it for $580,000. If he succeeds he will make a profit of $136,000 ($580,000 price - $220,000 principle - $180,000 cash at closing - $4,400 origination points - $39,600 in total interest.

Loan Example 2

Frias Financial issues a private money loan to Judy for a remodeling project in Salem, OR. The loan dictates the following:

$160,000 sales price
85% loan to value (LTV)
18 month term
8% interest rate
1% origination fee

Once the rehab project is completed, if Judy sells the project for $216,000, the numbers would be the following:

$216,000 sales price
- $136,000 note principle (85% LTV)
- $24,000 down payment (15% on 85% LTV)
- $1,360 origination fee (1% of the $136,000 principle amount)
- $16,320 total interest paid (18 months x 8% interest)
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= $38,320 total profit (doesn't include taxes or renovation costs)

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