Stormfield Capital

About Stormfield Capital

Stormfield Capital is a Southport, CT based private money lender. They provide funding in 12 states throughout the country. They offer lending solutions for a variety of needs and situations, including hard money loans for commercial properties, cash out hard money loans, rental property loans, short term bridge loans, and fix-and-flip loans. They issue terms between 12 months and 36 months, rates ranging between 8.99% and 11.99%, and loan amounts ranging from $150,000 to $5,000,000 with a maximum LTV of 65%. They make loans on most types of properties, including single family units, multi family residences, apartments, offices, retail units, hotels/motels, storage facilities, assisted living communities, mixed use, and churches.

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

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

Areas Served: MD, VA, DC, PA, NJ, NY, ME, MA, VT, NH, RI, DE

Loan Example 1

Melvin finds a duplex in Brooklyn, NY to flip and resell. Since he doesn't have enough cash on-hand to buy the $200,000 project outright, he takes out a fix-and-flip loan from Stormfield Capital. The lender agrees to issue a loan with a 60% loan-to-value (LTV) so they are willing to loan $120,000 on the house. The deal also includes the following features: 1) a 6 month term, 2) a 10% interest only note, and 3) a five percent origination fee.

In accordance with the terms of the note, Melvin will be required to pay a $6,000 origination fee in addition to 40% of the purchase price, or $80,000, based on the 60% LTV. The lender will collect $1,000 in monthly interest payments from the borrower. This is calculated by taking the full note value of $120,000, multiplying by the 10% rate of interest, and then dividing that amount by 12. If he sells the remodeled house for $250,000 at the end of the 6 month term, his total profit (not including remodeling costs) would be $38,000. This is calculated by taking the purchase price ($250,000) and subtracting the original principle ($120,000), the origination fee ($6,000), the money he contributed to closing ($80,000), and the total interest expenses ($6,000).

Loan Example 2

Stormfield Capital issues a hard money loan to Shawna for a remodeling project in Brooklyn, NY. The loan includes the following:

a) A $250,000 sales price, b) a 70% loan-to-value (LTV), c) a 18 month term, d) a 9% interest rate, and e) a 3% origination fee.

Shawna intends to sell the house when the note expires for $337,500. If she achieves this goal, the outcome will be as follows:

$337,500 sales price
- $175,000 principle on note (70% LTV)
- $75,000 cash paid at closing (30% on 70% LTV)
- $5,250 origination points (3% of the $175,000 principle)
- $23,625 interest payments (18 months x 9% interest)
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= $58,625 gross profit (doesn't include taxes or rehab costs)