Valor Lending

About Valor Lending

Based in San Diego, CA, Valor Lending is a private lender offering loans in San Diego. They offer private commercial loans, short term loans, short term fix and flip loans, and loans for rental properties. Their loan parameters are flexible, including loans with a maximum LTV of 70% and rates starting at 8.9% . They make loans on all of the following types of properties: single family, multi family, apartments, offices, retail units, mixed use spaces, and medical offices.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Mixed Use, Medical

Areas Served: San Diego

Licenses: CA BRE #02026238, NMLS #1600345

Lending Guidelines for Valor Lending

Below are the general loan guidelines published on the Valor 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 Valor Lending.

Loan Example 1

Danny closes on a $260,000 rehab project in San Diego, CA, using a fix and flip loan from Valor Lending. The lender agrees to make a loan with a 80% loan to value (LTV) so they will extend $208,000 on the house. The note is interest-only, with monthly payments, and is for 12 months at 8% interest with 4 points to be paid when the deal closes.

Accordingly, Danny will be required to contribute a $52,000 down payment in addition to paying a $8,320 origination fee. Valor Lending will collect $1,387 in monthly interest payments from the Danny. This is calculated by taking the full note value of $208,000, multiplying by the 8% rate of interest, and then dividing that amount by 12. At the end of the loan, he sells the rehabed house for $364,000. After deducting the $16,640 in total interest payments ($1,387 multiplied times 12 months), the $8,320 origination fee, the $208,000 principle on the loan, and the $52,000 he contributed to the closing, he will make a total profit of $79,040 ($364,000 sales price minus $284,960 in costs). This amount would be reduced by any rehab costs paid out of pocket.

Loan Example 2

Valor Lending makes a fix and flip loan to Kyle for a remodeling project in San Diego, CA. The loan dictates the following:

$360,000 sales price
50% loan to value (LTV)
6 month term
11% interest rate
4% origination fee

Assuming a $432,000 sales price after the 6 month term, the outcome for this deal would look like this:

$432,000 sales price
- $180,000 principle (50% LTV)
- $180,000 down payment (50% on 50% LTV)
- $7,200 origination points (4% of the $180,000 principle)
- $9,900 total interest paid (6 months x 11% interest)
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= $54,900 total profit (does not include taxes or renovation costs)

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