About Primecap Funding Group
Primecap Funding Group is a Delray Beach, FL based private money lender. They offer funding across the United States. Their lending focus is primarily on hard money loans for commercial properties. They offer rates ranging between 9% and 14% and loan amounts ranging from $1,000,000 to $100,000,000 with a maximum LTV of 80%. They make loans on all the following types of properties: multi family residences, apartment buildings, office units, retail storefronts, hotels and motels, storage buildings, assisted living facilities, mixed use spaces, warehouses, industrial facilities, medical buildings, and raw land.
Loan Types Offered: Commercial Hard Money Loans
Property Types Covered: Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical, Land
Areas Served: National
Lending Guidelines for Primecap Funding Group
Below are the general loan guidelines published on the Primecap Funding Group website. Please confirm all terms and rates directly with the lender.
Commercial Hard Money LoansLoan Amounts: $1,000,000 - $100,000,000
Available Rates: 9% - 14%
Typical Terms: N/A
Points Charged: 1% - 4%
Max Loan-to-Value (LTV): 80%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
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 Primecap Funding Group.
Loan Example 1
Dorthy is a small business owner in Nashville, TN. She wants to acquire a new warehouse for her business but she isn't able to secure a standard loan from her bank because of her low credit rating. She looks to Primecap Funding Group for a commercial private money loan so she can close the transaction. The property costs $380,000. Dorthy will have to put 40% down, or $152,000, because the lender will only loan 60% of the purchase (the loan to value or "LTV"). This means the principle amount on the loan is $228,000. In addition, the lender will charge a 4 point origination fee in addition to the 9%, 18 month term on the deal. They will not enforce a pre-payment penalty in the event that Dorthy pays off the note before expiration. Dorthy will need to pay an origination fee of $9,120 and she will then start to make the monthly payments in the amount of $1,710 ($228,000 principle amount x 9% interest / 12 months). She can pay back the note whenever she chooses since there is not a pre-payment penalty but she is responsible for the original principle when she concludes the loan.
Loan Example 2
Primecap Funding Group issues a hard money loan to Roy for a rehab project in Kansas City, MO. The deal dictates the following:
a) A $380,000 purchase price, b) a 55% loan to value (LTV), c) a 12 month term, d) a 12% interest rate, and e) a 3% origination fee.
Roy plans to sell the house when the note expires for $570,000. If he succeeds, the final numbers will be the following:
$570,000 sales price
- $209,000 loan principle (55% LTV)
- $171,000 down payment (45% on 55% LTV)
- $6,270 origination fee (3% of the $209,000 principle amount)
- $25,080 total interest paid (12 months x 12% interest)
= $158,650 gross profit (doesn't include taxes or renovation costs)
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