Real Estate Private Bank

About Real Estate Private Bank

Real Estate Private Bank is a private lender headquartered in Cincinnati, OH providing funding across the United States. They offer lending solutions for a variety of situations, including fix and flip hard money loans, short term bridge loans, and commercial loans. They offer rates ranging between 6% and 18%, loan amounts ranging from $10,000 to $5,000,000 with a maximum LTV of 70%, and terms between 3 months and 3 years. They will consider different loan requests but generally focus on single family homes and multi-family.

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

Property Types Covered: Single Family, Multi Family

Areas Served: National

Lending Guidelines for Real Estate Private Bank

Below are the general loan guidelines published on the Real Estate Private Bank 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 Real Estate Private Bank.

Loan Example 1

Mavis finds a townhouse in Atlanta, GA to rehab and re-sell. Since she doesn't have enough cash on-hand to buy the $340,000 property outright, she takes out a private money loan from Real Estate Private Bank. The borrower will be required to contribute 35% of the sales price in cash to closing based on a 65% loan-to-value set by the lending company. This makes the principle note from Real Estate Private Bank $221,000. The parameters of the loan dictate a 9% note for 18 months. They also stipulate a 4 point origination fee, which will also need to be paid when the property closes.

Mavis must bring a total of $32,400 upon closing to pay the $119,000 down payment in addition to the $8,840 origination fee. Once the loan is closed and Mavis takes on the property, she will have to begin making payments each month of $1,658 to the lender ($221,000 principle x 9% / 12 months). Assuming Mavis sells the renovated project for $510,000 at the end of the 18 month term, her total profit (not accounting for renovation expenses) would be $131,325. This is computed by taking the sales price ($510,000) and subtracting the original principle ($221,000), the origination fee ($8,840), the funds she contributed to closing ($119,000), and the total interest payments ($29,835).

Loan Example 2

Dale finds a property in Staten Island, NY to renovate and sell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from Real Estate Private Bank with the following parameters:

$160,000 sales price
85% loan-to-value (LTV)
12 month term
13% rate of interest
4% origination fee

Assuming a $232,000 sales price at the end of the 12 month term, the outcome for this project would look like this:

$232,000 sales price
- $136,000 principle on note (85% LTV)
- $24,000 cash paid at closing (15% on 85% LTV)
- $5,440 origination points (4% of the $136,000 principle amount)
- $17,680 interest payments (12 months x 13% interest)
-----------------------
= $48,880 gross profit (does not include taxes or renovation costs)

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