New Silver

About New Silver

New Silver is a hard money lender founded by real estate entrepreneurs with experience in lending, flipping and tech, offering over 25 years of experience to investors in Connecticut, Massachusetts and Rhode Island. New Silver created a simple online process for loan applications, pioneered the "no nickel and diming" low fee structure and created lending products where the borrowers' needs come first.

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

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

Areas Served: CT, MA, RI

Lending Guidelines for New Silver

Below are the general loan guidelines published on the New Silver 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 New Silver.

Loan Example 1

Jan finds a townhome in Boston, MA to remodel and re-sell. Since she doesn't have enough cash available to buy the $230,000 property outright, she takes out a hard money loan from New Silver. Since the lender sets a 50% loan to value, Jan will be required to put 50% down and the total amount of the loan will be $115,000. The loan also has the following features: 1) a 12 month length, 2) a 14% interest only note, and 3) a five point origination fee.

In addition to paying the $5,750 origination fee, Jan will also need to fund $115,000 of the purchase with her own money, or 50% of the purchase price. After the loan closes, she will need to pay the lender $1,342 in monthly interest payments, or 14% times $115,000 divided by 12 months in the year. Jan 's intention is to finish the remodel within the 12 months and re-sell it for $322,000. If she succeeds she will make a profit of $70,150 ($322,000 price - $115,000 principle amount - $115,000 funds brough to closing - $5,750 origination fee - $16,100 in total interest payments.

Loan Example 2

Shane finds a townhouse in Boston, MA to remodel and resell. Since he does not have enough cash to buy the property outright, he takes a hard money loan from New Silver with the following parameters:

a) A $160,000 purchase price, b) a 50% loan-to-value (LTV), c) a 12 month term, d) a 10% interest rate, and e) a 3% origination fee.

Once the renovation project is completed, if Shane sells the project for $224,000, the outcome would be the following:

$224,000 sales price
- $80,000 loan principle (50% LTV)
- $80,000 down payment (50% on 50% LTV)
- $2,400 origination fee (3% of the $80,000 principle)
- $8,000 total interest paid (12 months x 10% interest)
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= $53,600 total profit (does not include taxes or rehab costs)