The Capital Lenders

About The Capital Lenders

Based in Montclair, NJ, The Capital Lenders is a private lender offering funding all across the US. Their lending focus is mainly on commercial loans. Their loan parameters are versatile, including loan amounts ranging from $100,000 to $100,000,000 with a maximum LTV of 80%. They make loans on all of the following property types: multi family, apartment buildings, office buildings, retail units, hotels, storage buildings, senior living communities, mixed use buildings, warehouses, industrial facilities, and medical offices.

Loan Types Offered: Commercial Hard Money Loans

Property Types Covered: Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical

Areas Served: National

Lending Guidelines for The Capital Lenders

Below are the general loan guidelines published on the The Capital Lenders 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 The Capital Lenders.

Loan Example 1

To accommodate her growing business, Josefina decides to acquire a new commercial building. After she is turned down for standard loan from her bank, she obtains a commercial private money loan from The Capital Lenders. The list price of the property is $210,000 and the lender agrees to contribute 65% of the price (the loan to value / "LTV"), or $136,500. The other $73,500 will need to be paid by the borrower when the deal is closed. In addition, the lender requires a 4 percent origination fee to go along with the 9%, 12 month term on the note. They will not charge a pre-payment penalty in case Josefina pays off the loan before expiration. Josefina may eliminate the note at any point if she pays off the $136,500 in principle, but she will have to pay $1,024 per month interest payments ($136,500 principle value x 9% interest / 12 months per year) in the meantime, or until the loan expires. Because there is no pre-payment penalty, the only additional cost she will have is the $5,460 origination cost which she will pay at the close.

Loan Example 2

Daniel is a an investor in Boca Raton, FL. He buys an older townhouse for a rehab project and takes out a private money loan from The Capital Lenders with the following terms:

$220,000 purchase price
50% loan-to-value (LTV)
12 month term
9% rate of interest
4% origination fee

If Daniel succeeds in his goal of a $264,000 sales price, the outcome of the deal would be the following:

$264,000 sales price
- $110,000 note principle (50% LTV)
- $110,000 down payment (50% on 50% LTV)
- $4,400 origination fee (4% of the $110,000 principle)
- $9,900 total interest paid (12 months x 9% interest)
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= $29,700 gross profit (doesn't include taxes or rehab costs)

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