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
Lending Guidelines for Petrous Capital
Below are the general loan guidelines published on the Petrous Capital website. Please confirm all terms and rates directly with the lender.
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
The following loans are for education purposes only. They do not represent actual loans executed by Petrous Capital.
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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