About Iron Bridge Lending
Headquartered in Portland, OR, Iron Bridge Lending is a private money lender offering funding in 10 states across the country. Their focus is primarily on fix-and-flip hard money loans. They issue terms between 6 months and 1 year and loans with a maximum LTV of 70%. They will consider different loan scenarios but usually focus on single family homes and multi family.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: AZ, DC, OR, WI, CA, MI, TN, DE, NM, WA
Licenses: NMLS: 854231, OML: ML-5106, CFL: 603I808
Lending Guidelines for Iron Bridge Lending
Below are the general loan guidelines published on the Iron Bridge Lending website. Please confirm all terms and rates directly with the lender.
Fix and Flip LoansLoan Amounts: N/A
Available Rates: N/A
Typical Terms: 6 months - 12 months
Points Charged: N/A
Max Loan-to-Value (LTV): 70%
Max Loan-to-Cost (LTC): 100%
Owner Occupied Allowed: N/A
Interest Only Loans: YES
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: 2 - 5 Days
The following loans are for education purposes only. They do not represent actual loans executed by Iron Bridge Lending.
Loan Example 1
Iron Bridge Lending issues a hard money loan to Janet for a remodeling project in Los Angeles, CA, on a house that costs $220,000. The terms of the loan include a 70% loan to value (LTV), so she must contribute 30% of the price as cash at closing, which makes the principle loan amount $154,000. The loan is interest only, with monthly payments, and is for 6 months at 10% interest with 5 origination points paid at the closing.
Janet will need to contribute $66,000 to the closing (30% on the 70% loan to value), plus she will need to pay the $7,700 origination fee. Once the deal closes, she will need to pay Iron Bridge Lending $1,283 in monthly interest payments, or 10% multiplied times $154,000 divided by 12 months in the year. At the end of the loan, she sells the rehabed house for $319,000. After deducting the $7,700 in interest payments ($1,283 multiplied times 6 months), the $7,700 origination fee, the $154,000 principle on the loan, and the $66,000 she contributed to the closing, she will earn a total profit of $83,600 ($319,000 price minus $235,400 in costs). This profit would then be reduced by any building costs paid out of pocket.
Loan Example 2
Dan is a an investor in Los Angeles, CA. He purchases a run-down house for a remodeling project and takes a fix and flip loan from Iron Bridge Lending with the following features:
a) A $240,000 purchase price, b) a 55% loan to value (LTV), c) a 12 month term, d) a 11% interest rate, and e) a 1% origination fee.
Dan plans to list the property at the end of the term for $324,000. If he accomplishes his goal, the deal numbers would be as follows:
$324,000 sales price
- $132,000 loan principle (55% LTV)
- $108,000 cash paid at closing (45% on 55% LTV)
- $1,320 origination fee (1% of the $132,000 principle amount)
- $14,520 total interest paid (12 months x 11% interest)
= $68,160 gross profit (does not include taxes or rehab costs)
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