Royalty Business Lending

About Royalty Business Lending

Royalty Business Lending is a Fairfield, CA based private lender who offers loans throughout the country. They offer loans for a variety of scenarios, including fix-and-flip loans and commercial hard money loans. They provide loan amounts ranging from $60,000 to $10,000,000 with a maximum LTV of 75% and terms up to 2 years. They provide loans on all of the following property types: single family residences, multi-family units, apartment buildings, offices, retail units, hotels/motels, storage facilities, senior living facilities, mixed use spaces, warehouses, industrial buildings, and medical facilities.

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

Areas Served: National

Licenses: California Finance Lenders Law license # 60DBO72999

Lending Guidelines for Royalty Business Lending

Below are the general loan guidelines published on the Royalty Business Lending 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 Royalty Business Lending.

Loan Example 1

Clifton is a house flipper in Austin, TX. He finds an older property and decides to remodel it and flip it for a profit. The house costs $150,000 but he does not have the full amount so he takes out a fix and flip loan with Royalty Business Lending. The lender agrees to make a loan with a 50% loan-to-value (LTV) so they will loan $75,000 on the property. The note is interest-only, paid monthly, and is for 12 months at 13% interest with 2 points paid at closing.

Clifton will have to contribute $75,000 at closing (50% on the 50% loan to value), plus he will pay the $1,500 origination fee. he must then pay $813 per month to the lender. Clifton's plan is to finish the house within the 12 months and resell it for $210,000. If he succeeds he will earn a total profit of $48,750 ($210,000 price - $75,000 principle amount - $75,000 cash at closing - $1,500 origination fee - $9,750 in total interest payments.

Loan Example 2

Simone is a real estate investor in Nashville, TN. She purchases an older townhouse for a renovation project and takes out a private money loan from Royalty Business Lending with the following features:

a) A $150,000 purchase price, b) a 65% loan to value (LTV), c) a 12 month term, d) a 14% interest rate, and e) a 4% origination fee.

If Simone succeeds in her goal of a $225,000 sales price, the final numbers of the deal would be the following:

$225,000 sales price
- $97,500 loan principle (65% LTV)
- $52,500 cash paid at closing (35% on 65% LTV)
- $3,900 origination points (4% of the $97,500 principle)
- $13,650 interest payments (12 months x 14% interest)
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= $57,450 gross profit (does not include taxes or rehab costs)

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