Gravity Capital

About Gravity Capital

Gravity Capital is an Orem, UT based private money lender. They provide loans across the US. Their lending focus is mainly on commercial loans. Their lending guidelines are versatile, including loan amounts up to $25,000,000. They make loans on many property types, including multi-family units, apartments, office buildings, mixed use buildings, retail spaces, warehouse buildings, storage buildings, and industrial facilities.

Loan Types Offered: Commercial Hard Money Loans

Property Types Covered: Multi Family, Apartment, Office, Mixed Use, Retail, Warehouse, Storage, Industrial

Areas Served: National

Lending Guidelines for Gravity Capital

Below are the general loan guidelines published on the Gravity Capital 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 Gravity Capital.

Loan Example 1

Glenn is a business owner in Vancouver, WA. He decides to acquire a new commercial building for his business but he isn't able to secure a standard loan from his bank due to his below average FICO score. He looks to Gravity Capital for a commercial private money loan in order to fund the transaction. Since the borrower and lender contract to a 55% loan-to-value (LTV), Glenn will bring $162,000 at the close and the loan principle amount will be $198,000 because the price of the new property is $360,000. Additionally, the lender requires a 4 percent origination fee in combination with the 12%, 18 month term on the note. They agree to not charge a pre-payment penalty if Glenn pays off the note before it expires. Glenn will pay the origination fee of $7,920 and he will then start to make the interest payments of $1,980 ($198,000 principle amount x 12% interest rate / 12 months). He may repay the note early if he chooses because there isn't a pre-payment penalty but he is responsible for the original principle when he eliminates the loan.

Loan Example 2

Angie is a an investor in Chicago, IL. She finds a run-down house for a remodeling project and takes out a hard money loan from Gravity Capital with the following terms:

$250,000 purchase price
70% loan to value (LTV)
12 month term
8% interest rate
2% origination fee

Angie intends to list the project at the end of the term for $375,000. If she succeeds, the final numbers will be the following:

$375,000 sales price
- $175,000 loan principle (70% LTV)
- $75,000 cash paid at closing (30% on 70% LTV)
- $3,500 origination fee (2% of the $175,000 principle)
- $14,000 total interest paid (12 months x 8% interest)
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= $107,500 gross profit (doesn't include taxes or renovation costs)

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