About Lavan Financial Group
Lavan Financial Group is a Greenwich, CT based hard money lender who provides funding in Connecticut. Their focus is mainly on private commercial loans. They provide loans on most types of properties, including multi family residences, apartments, office units, retail storefronts, mixed use spaces, and industrial buildings.
Loan Types Offered: Commercial Hard Money Loans
Property Types Covered: Multi Family, Apartment, Office, Retail, Mixed Use, Industrial
Areas Served: CT
Lending Guidelines for Lavan Financial Group
Below are the general loan guidelines published on the Lavan Financial Group website. Please confirm all terms and rates directly with the lender.
Commercial Hard Money LoansLoan Amounts: N/A
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): N/A
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: N/A
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: N/A
The following loans are for education purposes only. They do not represent actual loans executed by Lavan Financial Group.
Loan Example 1
To facilitate her small business, Melissa must acquire a new commercial building. After she is turned down for conforming loan from her bank, she applies for a commercial hard money loan from Lavan Financial Group. The building is listed for $210,000. Melissa will have to put 15% down, or $31,500, because the lender will only loan 85% of the purchase (the loan to value or "LTV"). Accordingly, the principle amount on the note is $178,500. The lender also specifies the following terms of the deal: 1) a 14% rate of interest, 2) a 12 month term with interest only payments monthly, 3) an origination fee of 5 points paid by Melissa at closing, and 4) no fees for pre-payment. By the parameters of this deal, Melissa will need to pay an origination fee of $8,925 at the closing (5% x $178,500 principle amount) and will then start making payments of $2,083 monthly ($178,500 principle amount x 14% interest / 12 months). Finally, she will make a balloon payment of the $178,500 principle amount upon expiration of the loan, or before if she decides.
Loan Example 2
Ron is a an investor in Bridgeport, CT. He purchases an older townhouse for a renovation project and takes out a private money loan from Lavan Financial Group with the following features:
a) A $390,000 sales price, b) a 60% loan to value (LTV), c) a 6 month term, d) a 13% interest rate, and e) a 4% origination fee.
If Ron accomplishes his goal of a $585,000 sales price, the final numbers of the deal will be the following:
$585,000 sales price
- $234,000 loan principle (60% LTV)
- $156,000 cash paid at closing (40% on 60% LTV)
- $9,360 origination points (4% of the $234,000 principle)
- $15,210 total interest paid (6 months x 13% interest)
= $170,430 gross profit (does not include taxes or rehab costs)
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