About Friendly Rehab Funds
Friendly Rehab Funds is private money lender based in Richmond, VA. They provide funding throughout Richmond, Fredericksburg, Charlottesville, Virginia Beach, and Williamsburg. Their lending focus is mainly on fix and flip loans. They offer terms up to 6 months, loans with a maximum LTV of 65%, and rates ranging between 15% and 18%. They primarily offer loans on single family residences.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family
Areas Served: Richmond, Fredericksburg, Charlottesville, Virginia Beach, Williamsburg
Fix and Flip LoansLoan Amounts: N/A
Available Rates: 15% - 18%
Typical Terms: 6 months
Points Charged: 4.5% - 10%
Max Loan-to-Value (LTV): 65%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: YES
Prepayment Penalties: NO
Minimum FICO Score: N/A
Time to Close: N/A
Loan Example 1
Friendly Rehab Funds issues a hard money loan to Darren for a renovation project in Richmond, VA, on a house that costs $220,000. The loan to value (LTV) on the deal is 60%. This means Darren will have to bring 40% of the sales price to closing and the principle amount will be $132,000 on the loan. The rate on the loan is 8% for a length of 6 months and the lender requires a five point origination fee at closing. The interest payments are to be paid monthly and the principle will be paid back after the property sells.
By the terms of the deal, Darren will be required to pay a $6,600 origination fee in addition to 40% of the sales price, or $88,000, since there is a 60% LTV. After the loan closes, he will pay Friendly Rehab Funds $880 in monthly interest payments, or 8% multiplied times $132,000 divided by 12 months in a year. If Darren sells the project for $330,000 after 6 months, he would then earn a total profit of $98,120 after subtracting the principle amount of $132,000, the cash contributed at closing of $88,000, the origination points of $6,600, and the total interest payments of $5,280. This profit doesn't include rehab costs.
Loan Example 2
Keith is a an investor in Richmond, VA. He purchases an older townhouse for a renovation project and takes out a fix and flip loan from Friendly Rehab Funds with the following features:
a) A $180,000 purchase price, b) a 50% loan to value (LTV), c) a 18 month term, d) a 14% interest rate, and e) a 5% origination fee.
Keith intends to sell the property at the end of the term for $234,000. If he accomplishes his goal, the outcome will be as follows:
$234,000 sales price
- $90,000 note principle (50% LTV)
- $90,000 down payment (50% on 50% LTV)
- $4,500 origination fee (5% of the $90,000 principle)
- $18,900 interest payments (18 months x 14% interest)
= $30,600 total profit (does not include taxes or renovation costs)
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