TransACTION Commercial Capital

About TransACTION Commercial Capital

TransACTION Commercial Capital is a South Paris, ME based hard money lender. They offer funding across the United States. They provide loans for a variety of scenarios, including fix-and-flip loans and hard money loans for commercial properties. They issue rates ranging between 12% and 15%, loan amounts ranging from $100,000 to $100,000,000 with a maximum LTV of 70%, and terms between 6 months and 24 months. They make loans on various types of properties, including single family, multi family, apartment buildings, office buildings, retail spaces, hotels/motels, storage facilities, senior housing communities, mixed use spaces, warehouse spaces, industrial buildings, and medical offices.

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

Lending Guidelines for TransACTION Commercial Capital

Below are the general loan guidelines published on the TransACTION Commercial 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 TransACTION Commercial Capital.

Loan Example 1

Sonja takes a private money loan from TransACTION Commercial Capital in order to rehab a property to resale in Boca Raton, FL. The sales price of the house is $330,000. The terms of the deal include a 80% loan to value (LTV), so she must bring 20% of the price as cash at closing, making the principle note amount $264,000. The parameters of the deal dictate a 8% note for 6 months. They also stipulate a 5 point origination fee, that will also need to be paid upon closing.

By the parameters of the deal, Sonja will be required to contribute a $13,200 origination fee plus 20% of the sales price, or $66,000, since there is a 80% LTV. The monthly interest-only payments will then be $1,760 to the lender. If Sonja sells the rehabed project for $495,000 at the end of the 6 month term, her gross profit (not accounting for renovation expenses) would be $141,240. This is computed by taking the purchase price ($495,000) and subtracting the original principle ($264,000), the origination cost ($13,200), the money she brought to closing ($66,000), and the total interest expenses ($10,560).

Loan Example 2

Steve is a real estate investor in San Antonio, TX. He buys a run-down townhouse for a rehab project and obtains a fix and flip loan from TransACTION Commercial Capital with the following features:

$310,000 purchase price
75% loan to value (LTV)
18 month term
11% interest rate
4% origination fee

Based on a $434,000 sales price after the 18 month term, the outcome for the deal would look like this:

$434,000 sales price
- $232,500 principle on note (75% LTV)
- $77,500 cash paid at closing (25% on 75% LTV)
- $9,300 origination fee (4% of the $232,500 principle amount)
- $38,363 interest payments (18 months x 11% interest)
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= $76,338 total profit (doesn't include taxes or renovation costs)

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