Pangea Mortgage Capital

About Pangea Mortgage Capital

Pangea Mortgage Capital is private money lender based in Chicago, IL. They provide funding throughout the country. They provide lending solutions for a variety of situations, including fix and flip loans, loans for investments properties, and hard money bridge loans. They provide terms up to 1 year, rates starting at 7.99% , and loan amounts ranging from $1,000,000 to $25,000,000 with a maximum LTV of 80%. They provide loans on the following types of properties: multi family residences, apartments, office units, retail spaces, hotels and motels, storage facilities, assisted living communities, and mixed use.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Bridge Loans

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

Areas Served: National

Lending Guidelines for Pangea Mortgage Capital

Below are the general loan guidelines published on the Pangea Mortgage 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 Pangea Mortgage Capital.

Loan Example 1

Sheila is an investor in Nashville, TN. She discovers a run-down property and wants to renovate it and sell it for a profit. The property has a cost of $400,000 but she does not have the full amount so she obtains a private money loan with Pangea Mortgage Capital. As the lender sets a 85% loan to value, Sheila will have to put 15% down so the amount of the note will be $340,000. The parameters of the deal dictate a 10% note for 12 months. They also stipulate a 3 point origination fee, which will also have to be paid when the property closes.

In addition to paying the $10,200 origination fee, Sheila will also fund $60,000 of the purchase with her own cash, or 15% of the purchase price. Once the loan is closed and Sheila takes on the property, she will have to begin making payments each month of $2,833 to the lender ($340,000 principle x 10% / 12 months). If Sheila achieves her goal of a $580,000 sales price when the loan term expires, she would collect a total profit of $135,800 after repaying the principle amount and deducting the cash she contributed at closing, the origination fee, and the total monthly interest payments.

Loan Example 2

Norma is a real estate investor in Baton Rouge, LA. She purchases an older property for a rehab project and takes a private money loan from Pangea Mortgage Capital with the following paramters:

a) A $400,000 purchase price, b) a 50% loan-to-value (LTV), c) a 6 month term, d) a 14% interest rate, and e) a 1% origination fee.

After the renovation project is completed, if Norma sells the house for $540,000, the numbers would be as follows:

$540,000 sales price
- $200,000 principle (50% LTV)
- $200,000 down payment (50% on 50% LTV)
- $2,000 origination points (1% of the $200,000 principle)
- $14,000 interest payments (6 months x 14% interest)
-----------------------
= $124,000 gross profit (does not include taxes or rehab costs)

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