River Capital Mortgage

About River Capital Mortgage

River Capital Mortgage is a Portland, OR based private lender. They provide funding throughout Portland. They offer lending solutions for a variety of scenarios, including cash out loans, commercial loans, short term fix and flip loans, hard money bridge loans, and new construction loans. Their lending guidelines are versatile, including loan amounts ranging from $250,000 to $10,000,000. They make loans on most property types, including single family units, multi-family units, retail spaces, mixed use buildings, senior living communities, storage facilities, and industrial buildings.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Refinance / Cash Out Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Retail, Mixed Use, Assisted Living, Storage, Industrial

Areas Served: Portland

Licenses: NMLS #110919

Lending Guidelines for River Capital Mortgage

Below are the general loan guidelines published on the River Capital Mortgage 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 River Capital Mortgage.

Loan Example 1

Alvin is a real estate investor in Portland, OR. He locates an older property and decides to remodel it and flip it for a profit. The house costs $320,000 but he does not have the full amount so he takes out a fix and flip loan with River Capital Mortgage. The terms of the loan include a 55% loan-to-value (LTV), so he must bring 45% of the price as cash at closing, which makes the principle note amount $176,000. The rate on the loan is 14% for a term of 6 months and the lender requires a five point origination fee at closing. The interest payments are to be paid on a monthly basis and the principle amount will be returned after the property sells.

Therefore, Alvin will be required to contribute a $144,000 down payment in addition to paying a $8,800 origination fee. The monthly interest only payments will then total $2,053 to the lender. At the end of the note, he sells the rehabed house for $448,000. After deducting the $12,320 in interest payments ($2,053 times 6 months), the $8,800 origination fee, the $176,000 principle on the note, and the $144,000 he brought to the closing, he will make a gross profit of $106,880 ($448,000 sales price minus $341,120 in total costs). This amount would be reduced by any rehab costs paid by Alvin.

Loan Example 2

Adam is a real estate investor in Portland, OR. He locates an older property for a renovation project and takes a hard money loan from River Capital Mortgage with the following paramters:

a) A $260,000 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.

Adam plans to sell the house at the end of the term for $325,000. If he succeeds, the final numbers would be the following:

$325,000 sales price
- $143,000 principle (55% LTV)
- $117,000 down payment (45% on 55% LTV)
- $7,150 origination fee (5% of the $143,000 principle)
- $23,595 total interest paid (18 months x 11% interest)
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= $34,255 total profit (doesn't include taxes or rehab costs)

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