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
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
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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