About Palm Desert Capital
Palm Desert Capital is a Palm Desert, CA based private money lender providing funding in California. Their focus is mainly on fix and flip loans. They offer rates up to 12% . They primarily offer funding on single family residences.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family
Areas Served: CA
Lending Guidelines for Palm Desert Capital
Below are the general loan guidelines published on the Palm Desert Capital website. Please confirm all terms and rates directly with the lender.
Fix and Flip LoansLoan Amounts: N/A
Available Rates: Up to 12%
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): N/A
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 Palm Desert Capital.
Loan Example 1
Ginger closes on a $170,000 renovation project in Los Angeles, CA, using a fix-and-flip loan from Palm Desert Capital. The borrower will be required to fund 45% of the purchase price in cash to the closing based on a 55% loan-to-value set by the lender. This makes the principle amount from Palm Desert Capital $93,500. The loan also consists of these features: 1) a 6 month term, 2) a 12% interest-only note, and 3) a two point origination fee.
Accordingly, the borrower will be required to contribute a $76,500 down payment in addition to paying a $1,870 origination fee. she must then pay $935 monthly to the lender. Ginger 's intention is to complete the remodel by the end of the 6 months and re-sell it for $246,500. If she succeeds she will collect a profit of $69,020 ($246,500 price - $93,500 principle amount - $76,500 down payment - $1,870 origination fee - $5,610 in interest.
Loan Example 2
Chris is a an investor in Los Angeles, CA. She locates a run-down townhouse for a rehab project and obtains a fix and flip loan from Palm Desert Capital with the following terms:
a) A $280,000 sales price, b) a 55% loan-to-value (LTV), c) a 12 month term, d) a 9% interest rate, and e) a 3% origination fee.
Once the rehab project is completed, if Chris sells the project for $392,000, the numbers would be the following:
$392,000 sales price
- $154,000 principle (55% LTV)
- $126,000 cash paid at closing (45% on 55% LTV)
- $4,620 origination points (3% of the $154,000 principle)
- $13,860 total interest paid (12 months x 9% interest)
= $93,520 total profit (does not include taxes or renovation costs)
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