GFS Commercial Loans

About GFS Commercial Loans

GFS Commercial Loans is a McKinney, TX based private money lender who offers funding all throughout the country. They offer loans for a variety of situations and needs, including hard money bridge loans, commercial loans, short term fix and flip loans, and hard money construction loans. They issue terms between 12 months and 36 months, rates ranging between 8% and 15%, and loan amounts ranging from $150,000 to $15,000,000 with a maximum LTV of 65%. They do not require a minimum FICO score to receive a loan. They make loans on all the following property types: single family residences, multi-family units, apartments, offices, retail spaces, hotels and motels, storage buildings, assisted living communities, mixed use, warehouse buildings, industrial buildings, medical facilities, undeveloped land, and churches.

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

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

Areas Served: National

Lending Guidelines for GFS Commercial Loans

Below are the general loan guidelines published on the GFS Commercial Loans 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 GFS Commercial Loans.

Loan Example 1

Cindy is a house flipper in Detroit, MI. She finds a run-down property and wants to remodel it and flip it for a profit. The house has a cost of $270,000 but she doesn't have the full amount so she obtains a hard money loan with GFS Commercial Loans. The borrower will be required to fund 30% of the sales price in cash to the closing based on a 70% loan to value stipulated by the lending company. This makes the loan principle from GFS Commercial Loans $189,000. The terms of the loan also include a four percent origination fee that is to be paid at the closing and a 12 month, interest-only note with a 13% interest rate.

On top of the $7,560 origination fee, Cindy will also need to fund $81,000 of the purchase with her own funds, or 30% of the sales price. After the deal is executed and Cindy takes the property, she will have to begin making monthly payments of $2,048 to the lender ($189,000 principle x 13% / 12 months). Assuming she sells the renovated project for $405,000 at the end of the 12 month term, her gross profit (not accounting for remodeling expenses) would be $102,870. This is calculated by taking the sales price ($405,000) and subtracting the original note amount ($189,000), the origination fee ($7,560), the funds she contributed to closing ($81,000), and the total interest payments ($24,570).

Loan Example 2

GFS Commercial Loans makes a loan to Jim for a remodeling project in Orlando, FL. The loan includes the following:

$150,000 purchase price
75% loan to value (LTV)
12 month term
14% rate of interest
1% origination fee

Jim plans to list the property when the note expires for $180,000. If he succeeds, the final numbers would be as follows:

$180,000 sales price
- $112,500 loan principle (75% LTV)
- $37,500 down payment (25% on 75% LTV)
- $1,125 origination points (1% of the $112,500 principle amount)
- $15,750 interest payments (12 months x 14% interest)
-----------------------
= $13,125 total profit (doesn't include taxes or rehab costs)

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