Veristone Capital

About Veristone Capital

Veristone Capital is private lender headquartered in Kirkland, WA. They offer loans in Oregon and Washington. They offer hard money bridge loans, fix and flip loans, new construction loans, commercial loans, and cash out hard money loans. They offer terms between 6 months and 9 months, rates starting at 12%, and loans with a maximum LTV of 65%. They provide loans on numerous types of properties, including single family residences, multi family residences, office buildings, retail units, industrial facilities, mixed use, and apartments.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Refinance / Cash Out Loans, Bridge Loans

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

Areas Served: OR, WA

Lending Guidelines for Veristone Capital

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

Loan Example 1

Veristone Capital issues a private money loan to Alexander for a remodeling project in Portland, OR, on a property that costs $160,000. The lender agrees to issue a note with a 60% loan-to-value (LTV) so they are willing to loan $96,000 on the property. The deal also consists of the following features: 1) a 6 month length, 2) a 13% interest-only note, and 3) a four percent origination charge.

By the parameters of the loan, Alexander will need to contribute a $3,840 origination fee in addition to 40% of the sales price, or $64,000, based on the 60% LTV. After the deal is closed and Alexander takes on the project, he will begin making monthly payments of $1,040 to the lender ($96,000 principle x 13% / 12 months). If Alexander sells the house for $216,000 after 6 months, he would then realize a total profit of $45,920 after subtracting the principle of $96,000, the funds paid at the close of $64,000, the origination points of $3,840, and the aggregate interest payments of $6,240. This gross profit does not account for remodeling costs.

Loan Example 2

Paul finds a property in Portland, OR to renovate and re-sell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from Veristone Capital with the following parameters:

a) A $150,000 purchase price, b) a 80% loan-to-value (LTV), c) a 12 month term, d) a 10% interest rate, and e) a 5% origination fee.

If Paul accomplishes his goal of a $225,000 sales price, the outcome of the deal would be the following:

$225,000 sales price
- $120,000 principle on note (80% LTV)
- $30,000 cash paid at closing (20% on 80% LTV)
- $6,000 origination fee (5% of the $120,000 principle amount)
- $12,000 total interest paid (12 months x 10% interest)
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= $57,000 total profit (does not include taxes or rehab costs)

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