About P2 Funding
P2 Funding is hard money lender headquartered in Chicago, IL. They provide funding in Illinois. Their lending focus is primarily on hard money loans for commercial properties. They provide loan amounts ranging from $50,000 to $10,000,000 with a maximum LTV of 70% and terms between 3 months and 3 years. They will make loans on all of the following types of properties: multi family, apartments, offices, retail spaces, hotels, storage buildings, senior living facilities, mixed use, undeveloped land, churches, warehouse spaces, industrial facilities, and medical facilities.
Loan Types Offered: Commercial Hard Money Loans
Property Types Covered: Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Land, Church, Warehouse, Industrial, Medical
Areas Served: IL
Lending Guidelines for P2 Funding
Below are the general loan guidelines published on the P2 Funding website. Please confirm all terms and rates directly with the lender.
Commercial Hard Money LoansLoan Amounts: $50,000 - $10,000,000
Available Rates: N/A
Typical Terms: 3 months - 36 months
Points Charged: N/A
Max Loan-to-Value (LTV): 70%
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 P2 Funding.
Loan Example 1
Alexandria runs a small business in Chicago, IL and needs to purchase a new building for her operations. Since she can't get a conventional mortgage loan from a bank, she looks to P2 Funding for a commercial private money loan. Since the borrower and lender contract to a 60% loan to value (LTV), Alexandria will pay $104,000 at closing and the loan principle amount will be $156,000 because the list price of the new property is $260,000. The parameters of the loan include a 18 month length, a 9% interest rate, and a 2 origination fee paid by Alexandria at the closing. According to the conditions of this loan, Alexandria will need to pay an origination fee of $3,120 when the loan is closed. She will also start making payments of $1,170 / month for the duration of the note and will pay back the principle amount at the end of the 18 month loan term. If she decides to repay the note early, she may do so with no additional expense since there is no pre-payment penalty associated with the deal.
Loan Example 2
Tom takes a hard money loan from P2 Funding in order to renovate a townhouse to flip in Chicago, IL. The loan has the following parameters:
a) A $200,000 sales price, b) a 60% loan-to-value (LTV), c) a 12 month term, d) a 8% interest rate, and e) a 4% origination fee.
Tom plans to sell the project when the note expires for $260,000. If he succeeds, the outcome would be the following:
$260,000 sales price
- $120,000 principle on note (60% LTV)
- $80,000 down payment (40% on 60% LTV)
- $4,800 origination points (4% of the $120,000 principle amount)
- $9,600 total interest paid (12 months x 8% interest)
= $45,600 gross profit (does not include taxes or rehab costs)
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