Magnus Commercial Capital

About Magnus Commercial Capital

Magnus Commercial Capital is a hard money lender headquartered in Washington, DC offering loans all throughout the United States. Their focus is primarily on commercial loans. They offer loans on all the following property types: multi family, apartments, office units, retail storefronts, hotels, storage facilities, mixed use, and industrial buildings.

Loan Types Offered: Commercial Hard Money Loans

Property Types Covered: Multi Family, Apartment, Office, Retail, Hotel, Storage, Mixed Use, Industrial

Areas Served: National

Lending Guidelines for Magnus Commercial Capital

Below are the general loan guidelines published on the Magnus Commercial Capital 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 Magnus Commercial Capital.

Loan Example 1

To accommodate his small business, Justin must acquire a new retail space. After being turned down for conforming loan from his local bank, he applies for a commercial private money loan from Magnus Commercial Capital. The building is listed for $390,000. Justin will have to put 25% down, or $97,500, since the lender will only fund 75% of the acquisition (the loan to value or "LTV"). This means the principle amount on the note is $292,500. The loan also specifies a 12 month term, a 12% interest rate, interest only payments made each month with a balloon payment when the note expires (with no pre-payment penalty), and a 1 point origination fee. Justin can eliminate the loan at any point in time if he pays off the $292,500 in principle, however, he will be required to pay $2,925 /month interest payments ($292,500 principle value x 12% interest rate / 12 months per year) in the meantime, or up to the point the note expires. Because there isn't a pre-payment penalty, the only additional expense he will have to pay is the $2,925 origination points which he will pay when the deal closes.

Loan Example 2

Kayla locates a duplex in Washington DC, DC to renovate and resell. Because she does not have enough cash to buy the property outright, she takes a hard money loan from Magnus Commercial Capital with the following parameters:

$390,000 purchase price
60% loan-to-value (LTV)
6 month term
10% rate of interest
5% origination fee

If Kayla achieves her goal of a $585,000 sales price, the final numbers of the deal would be the following:

$585,000 sales price
- $234,000 principle on note (60% LTV)
- $156,000 cash paid at closing (40% on 60% LTV)
- $11,700 origination fee (5% of the $234,000 principle)
- $11,700 interest payments (6 months x 10% interest)
-----------------------
= $171,600 total profit (does not include taxes or rehab costs)

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