Precision Capital

About Precision Capital

Precision Capital is an Eugene, OR based private lender offering funding throughout Oregon. They offer commercial loans and short term fix and flip loans. They offer loans with a maximum LTV of 70%. They provide loans on various property types, including single family, multi-family units, apartment buildings, office buildings, retail storefronts, hotels/motels, storage facilities, assisted living facilities, mixed use buildings, warehouse buildings, industrial facilities, medical facilities, and churches.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical, Church

Areas Served: OR

Licenses: ORML #380, NMLS #199919

Lending Guidelines for Precision Capital

Below are the general loan guidelines published on the Precision 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 Precision Capital.

Loan Example 1

John is a house flipper in Portland, OR. He discovers a run-down property for sale and wants to rehab it and flip it for a profit. The house has a cost of $220,000 but he does not have the full amount so he takes out a fix and flip loan with Precision Capital. The borrower will be required to contribute 15% of the purchase price in cash to closing based on a 85% loan to value set by the lending company. This makes the principle amount from Precision Capital $187,000. The interest rate on the loan is 14% for a length of 18 months and the company requires a five point origination fee at the closing. The interest is to be paid monthly and the principle amount will be paid back after the sale of the property.

In addition to paying the $9,350 origination fee, John will also need to fund $33,000 of the purchase with his own money, or 15% of the purchase price. Once the deal is closed and John takes the project, he will begin making payments each month of $2,182 to the lender ($187,000 principle x 14% / 12 months). Assuming John sells the renovated project for $330,000 at the end of the 18 month term, his gross profit (not including remodeling expenses) would be $61,380. This is calculated by taking the sales price ($330,000) and subtracting the original principle ($187,000), the origination cost ($9,350), the funds he brought to closing ($33,000), and the total interest payments ($39,270).

Loan Example 2

Gerald is a an investor in Portland, OR. He buys an older property for a rehab project and takes a private money loan from Precision Capital with the following terms:

$180,000 purchase price
85% loan-to-value (LTV)
12 month term
13% interest rate
2% origination fee

If Gerald succeeds in his goal of a $234,000 sales price, the numbers of the deal would be as follows:

$234,000 sales price
- $153,000 principle (85% LTV)
- $27,000 down payment (15% on 85% LTV)
- $3,060 origination points (2% of the $153,000 principle amount)
- $19,890 interest payments (12 months x 13% interest)
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= $31,050 gross profit (does not include taxes or rehab costs)