Milestone Financial

About Milestone Financial

Milestone Financial is a Los Altos, CA based private lender providing funding throughout California. They provide fix and flip loans, loans for rental properties, cash out hard money loans, private commercial loans, and hard money bridge loans. Their loan parameters are versatile, including rates starting at 9.95% , loan amounts ranging from $30,000 to $2,000,000 with a maximum LTV of 70%, and terms between 1 year and 5 years. They provide loans on numerous property types, including single family, multi family residences, apartments, office units, retail spaces, mixed use buildings, and industrial facilities.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, Refinance / Cash Out Loans, Bridge Loans

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

Areas Served: CA

Licenses: California Department of Business Oversight Financing Law License 60DBO 73257, SEC permit CIK 000163997

Lending Guidelines for Milestone Financial

Below are the general loan guidelines published on the Milestone Financial 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 Milestone Financial.

Loan Example 1

Ray finds a house in Los Angeles, CA to flip and resell. Since he does not have enough cash available to acquire the $330,000 project outright, he decides to take out a hard money loan from Milestone Financial. The terms of the deal include a 65% loan to value (LTV), so he must bring 35% of the price as cash at closing, making the principle loan amount $214,500. The loan is interest-only, paid monthly, and is for 6 months at 9% interest with 1 points paid at the closing.

By the terms of the deal, Ray will be required to contribute a $2,145 origination fee in addition to 35% of the sales price, or $115,500, since there is a 65% LTV. The lender will collect $1,609 in monthly interest payments from the borrower. This is computed by taking the full loan amount of $214,500, multiplying that by the 9% interest rate, and then dividing that number by 12. At the expiration of the loan, he sells the rehabed house for $445,500. After deducting the $9,653 in interest payments ($1,609 multiplied by 6 months), the $2,145 origination fee, the $214,500 principle amount on the loan, and the $115,500 he brought to closing, he will earn a gross profit of $103,703 ($445,500 price minus $341,798 in total costs). This amount would then be reduced by any renovation costs paid by Ray.

Loan Example 2

Rodney finds a property in Los Angeles, CA to renovate and resell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from Milestone Financial with the following parameters:

a) A $220,000 purchase price, b) a 80% loan to value (LTV), c) a 6 month term, d) a 9% interest rate, and e) a 3% origination fee.

Assuming a $297,000 sales price after the 6 month term, the numbers for the deal would look like the following:

$297,000 sales price
- $176,000 principle (80% LTV)
- $44,000 down payment (20% on 80% LTV)
- $5,280 origination fee (3% of the $176,000 principle amount)
- $7,920 total interest paid (6 months x 9% interest)
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= $63,800 total profit (does not include taxes or renovation costs)

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