Thorofare Capital

About Thorofare Capital

Thorofare Capital is hard money lender based in Los Angeles, CA. They offer funding all across the country. Their focus is mainly on private commercial loans. Their loan parameters are flexible, including loan amounts ranging from $3,000,000 to $60,000,000. They provide loans on all of the following types of properties: multi-family, apartment buildings, office buildings, retail units, hotels, storage facilities, assisted living communities, mixed use spaces, warehouse buildings, industrial buildings, and medical facilities.

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 Thorofare Capital

Below are the general loan guidelines published on the Thorofare Capital 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 Thorofare Capital.

Loan Example 1

Lance is a business owner in Nashville, TN. He wants to purchase a new commercial building for his company but he isn't able to obtain a conventional mortgage loan from his bank due to his subpar credit rating. He looks to Thorofare Capital for a commercial private money loan to close the acquisition. The property carries a price tag of $200,000. Lance will have to put 25% down, or $50,000, because the lender will only fund 75% of the purchase (the loan-to-value or "LTV"). This means that the principle on the loan is $150,000. The parameters of the loan include a 12 month length, a 8% rate of interest, and 4 origination points to be paid by the borrower at the closing. Lance will need to pay the origination fee of $6,000 and will then begin to make the interest payments of $1,000 ($150,000 principle x 8% interest / 12 months per year). He can repay the note early if he wants to since there isn't a pre-payment penalty but he is responsible for paying off the full principle amount whenever he eliminates the loan.

Loan Example 2

Andy finds a property in Nashville, TN to rehab and re-sell. Because he does not have enough cash to buy the property outright, he takes a hard money loan from Thorofare Capital with the following parameters:

$230,000 sales price
75% loan-to-value (LTV)
12 month term
11% interest rate
5% origination fee

If Andy succeeds in his goal of a $333,500 sales price, the outcome of the project would be the following:

$333,500 sales price
- $172,500 loan principle (75% LTV)
- $57,500 down payment (25% on 75% LTV)
- $8,625 origination points (5% of the $172,500 principle amount)
- $18,975 total interest paid (12 months x 11% interest)
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= $75,900 gross profit (doesn't include taxes or rehab costs)

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