LoanSum

About LoanSum

LoanSum is a Maryland Heights, MO based private lender providing loans in St Louis County, Saint Charles County, and Jefferson County. They provide fix-and-flip hard money loans, hard money bridge loans, and commercial hard money loans. They offer loans with a maximum LTV of 75%, terms between 4 months and 1 year, and rates ranging between 15% and 18%. They will consider different loan scenarios but primarily focus on single family units and multi family.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family

Areas Served: St Louis County, Saint Charles County, Jefferson County

Lending Guidelines for LoanSum

Below are the general loan guidelines published on the LoanSum 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 LoanSum.

Loan Example 1

LoanSum issues a fix and flip loan to Ronald for a rehab project in St Charles, MO, on a house that is listed for $160,000. The lender agrees to issue a loan with a 60% loan to value (LTV) so they are willing to loan $96,000 on the property. The parameters of the deal dictate a 14% note for 6 months. They also stipulate a 5 point origination fee, which will also have to be paid at closing.

The borrower must contribute a total of $32,400 upon closing to pay the $64,000 down payment plus the $4,800 origination fee. The monthly interest only payments will then be $1,120 to the lender. Assuming Ronald sells the rehabed house for $232,000 at the end of the 6 month term, his total profit (not including renovation costs) would be $60,480. This is computed by taking the purchase price ($232,000) and subtracting the original principle ($96,000), the origination fee ($4,800), the money he contributed to closing ($64,000), and the total interest expenses ($6,720).

Loan Example 2

Chris finds a townhouse in St Charles, MO to renovate and sell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from LoanSum with the following parameters:

a) A $260,000 purchase price, b) a 65% loan-to-value (LTV), c) a 18 month term, d) a 10% interest rate, and e) a 5% origination fee.

Based on a $351,000 sales price after the 18 month term, the final numbers for the project would look like this:

$351,000 sales price
- $169,000 principle on note (65% LTV)
- $91,000 down payment (35% on 65% LTV)
- $8,450 origination points (5% of the $169,000 principle)
- $25,350 total interest paid (18 months x 10% interest)
-----------------------
= $57,200 total profit (doesn't include taxes or rehab costs)

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