About Petrous Capital
Petrous Capital is a Baltimore, MD based private lender. They offer loans throughout Baltimore. Their focus is primarily on fix-and-flip hard money loans. They offer loans with a maximum LTV of 70%. The focus of their lending is on single family homes and multi family.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: Baltimore
Fix and Flip LoansLoan Amounts: N/A
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): 70%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: NO
Interest Only Loans: YES
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: N/A
Loan Example 1
Petrous Capital makes a hard money loan to Allen for a renovation project in Baltimore, MD, on a property that costs $310,000. The lender agrees to write a loan with a 55% loan to value (LTV) so they are willing to loan $170,500 on the property. The terms of the deal also include a three percent origination fee which is to be paid at closing and a 6 month, interest only note with a 8% interest rate.
On top of the $5,115 origination fee, Allen will also need to fund $139,500 of the purchase with his own cash, or 45% of the sales price. Petrous Capital will collect $1,137 in monthly interest payments from the Allen . This is calculated by taking the total loan value of $170,500, multiplying that by the 8% interest rate, and then dividing that number by 12. At the end of the loan, he sells the rehabed property for $418,500. After subtracting the $6,820 in total interest payments ($1,137 times 6 months), the $5,115 origination fee, the $170,500 principle on the loan, and the $139,500 he brought to closing, he will earn a total profit of $96,565 ($418,500 sales price minus $321,935 in costs). This amount would then be reduced by any building costs paid by Allen .
Loan Example 2
Patty finds a townhouse in Baltimore, MD to remodel and re-sell. Since she does not have enough cash to buy the property outright, she takes a fix and flip loan from Petrous Capital with the following parameters:
a) A $200,000 purchase price, b) a 55% loan to value (LTV), c) a 18 month term, d) a 11% interest rate, and e) a 5% origination fee.
If Patty succeeds in her goal of a $270,000 sales price, the outcome of the deal will be the following:
$270,000 sales price
- $110,000 principle (55% LTV)
- $90,000 cash paid at closing (45% on 55% LTV)
- $5,500 origination points (5% of the $110,000 principle amount)
- $18,150 interest payments (18 months x 11% interest)
= $46,350 total profit (doesn't include taxes or rehab costs)
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