Verdeo Capital Group

About Verdeo Capital Group

Based in Granite Bay, CA, Verdeo Capital Group is an asset-based lender offering funding in California. They offer rental property loans and short term fix and flip loans. They provide loans with a maximum LTV of 65%. They do not require a minimum credit rating to receive a loan. They will consider varying lending requests but generally focus on single family residences and multi family.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: CA

Licenses: CA Department of Real Estate #01848375, NMLS #271196

Lending Guidelines for Verdeo Capital Group

Below are the general loan guidelines published on the Verdeo Capital Group 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 Verdeo Capital Group.

Loan Example 1

Sadie is a real estate investor in Los Angeles, CA. She locates a run-down property and decides to renovate it and flip it for a profit. The house has a cost of $200,000 but she doesn't have the full amount so she takes a fix and flip loan with Verdeo Capital Group. Since the lender agrees to a 50% loan to value, Sadie will have to put 50% down and the total amount of the loan will be $100,000. The interest rate on the loan is 9% for a length of 18 months and the company requires a four point origination fee at the closing. The interest is to be paid monthly and the principle will be repaid after the sale of the property.

The borrower must fund a total of $32,400 upon closing to pay the $100,000 down payment plus the $4,000 origination fee. After the loan is executed and Sadie takes on the property, she will begin making payments each month of $750 to the lender ($100,000 principle x 9% / 12 months). At the expiration of the loan, she sells the renovated house for $260,000. After deducting the $13,500 in interest expenses ($750 multiplied times 18 months), the $4,000 origination fee, the $100,000 principle on the loan, and the $100,000 she contributed to closing, she will make a total profit of $42,500 ($260,000 sales price minus $217,500 in total costs). This amount would then be reduced by any building costs paid by the borrow.

Loan Example 2

Verdeo Capital Group makes a loan to Kerri for a remodeling project in Los Angeles, CA. The deal dictates the following:

$250,000 sales price
65% loan-to-value (LTV)
6 month term
9% interest rate
4% origination fee

If Kerri accomplishes her goal of a $362,500 sales price, the numbers of the project will be the following:

$362,500 sales price
- $162,500 principle on note (65% LTV)
- $87,500 cash paid at closing (35% on 65% LTV)
- $6,500 origination points (4% of the $162,500 principle amount)
- $7,313 interest payments (6 months x 9% interest)
-----------------------
= $98,688 gross profit (does not include taxes or rehab costs)

No Reviews Yet

Verdeo Capital Group currently has no reviews. To add a review now, click the link below:

Write a Review for Verdeo Capital Group