About Lafayette Financial
Lafayette Financial is an Alamo, CA based hard money lender providing loans in Alamo, San Francisco, Oakland, and San Jose. Their lending focus is primarily on fix-and-flip hard money loans. They issue loan amounts ranging from $30,000 to $500,000 with a maximum LTV of 70%, rates ranging between 10% and 13%, and terms between 1 year and 5 years. They do not require borrowers to have a minimum FICO score to receive a loan. The focus of their loans is on single family homes and multi family.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: Alamo, San Francisco, Oakland, San Jose
Fix and Flip LoansLoan Amounts: $30,000 - $500,000
Available Rates: 10% - 13%
Typical Terms: 12 months - 60 months
Points Charged: N/A
Max Loan-to-Value (LTV): 70%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: NO
Interest Only Loans: YES
Prepayment Penalties: YES
Minimum FICO Score: NO
Time to Close: N/A
Loan Example 1
Marcia takes a fix-and-flip loan from Lafayette Financial in order to remodel a townhome to flip in Alamo, CA. The sales price of the house is $310,000. The loan-to-value (LTV) on the deal is 55%. This means Marcia will have to bring 45% of the purchase price to closing and the principle will be $170,500 on the note. The parameters of the note also include a five point origination fee which is to be paid at closing and a 12 month, interest only note with a 11% interest rate.
Marcia will have to contribute $139,500 at the closing (45% on the 55% LTV), plus she will need to pay the $8,525 origination fee. The monthly interest-only payments will then be $1,563 to Lafayette Financial. If Marcia meets her goal of a $372,000 sales price when the loan term expires, she would pocket a total profit of $34,720 after repaying the principle amount and subtracting the cash she paid at closing, the origination fee, and the total interest payments.
Loan Example 2
Lafayette Financial makes a loan to Harvey for a renovation project in Alamo, CA. The deal includes the following:
a) A $310,000 purchase price, b) a 75% loan to value (LTV), c) a 6 month term, d) a 8% interest rate, and e) a 2% origination fee.
If Harvey accomplishes his goal of a $418,500 sales price, the numbers of the deal would be the following:
$418,500 sales price
- $232,500 loan principle (75% LTV)
- $77,500 cash paid at closing (25% on 75% LTV)
- $4,650 origination points (2% of the $232,500 principle amount)
- $9,300 total interest paid (6 months x 8% interest)
= $94,550 gross profit (does not include taxes or rehab costs)
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