About Washington Commercial Lending & Development
Washington Commercial Lending & Development is an asset-based lender based in Springfield, VA providing loans in Washington DC. Their focus is primarily on short term fix and flip loans. They issue rates ranging between 12% and 18%. Their loan guidelines do not include a minimum FICO score. They primarily make loans on single family homes and multi family.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: Washington DC
Lending Guidelines for Washington Commercial Lending & Development
Below are the general loan guidelines published on the Washington Commercial Lending & Development website. Please confirm all terms and rates directly with the lender.
Fix and Flip LoansLoan Amounts: N/A
Available Rates: 12% - 18%
Typical Terms: N/A
Points Charged: 5% - 10%
Max Loan-to-Value (LTV): N/A
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: NO
Interest Only Loans: YES
Prepayment Penalties: YES
Minimum FICO Score: NO
Time to Close: N/A
The following loans are for education purposes only. They do not represent actual loans executed by Washington Commercial Lending & Development.
Loan Example 1
Nicholas closes on a $290,000 renovation project in Washington DC, DC, using a fix and flip loan from Washington Commercial Lending & Development. The terms of the note include a 55% loan-to-value (LTV), so he must bring 45% of the price as cash to closing, which makes the principle loan amount $159,500. The parameters of the note also include a three percent origination fee that will be paid at closing and a 6 month, interest only note with a 8% interest rate.
In addition to paying the $4,785 origination fee, Nicholas will also have to fund $130,500 of the purchase with his own funds, or 45% of the purchase price. he must then pay $1,063 per month to Washington Commercial Lending & Development. Nicholas 's intention is to finish the renovation by the end of the 6 months and resell it for $406,000. If he succeeds he will earn a total profit of $104,835 ($406,000 price - $159,500 principle - $130,500 cash at closing - $4,785 origination fee - $6,380 in interest.
Loan Example 2
Washington Commercial Lending & Development issues a private money loan to Terry for a remodeling project in Washington DC, DC. The loan dictates the following:
a) A $250,000 sales price, b) a 65% loan to value (LTV), c) a 6 month term, d) a 10% interest rate, and e) a 4% origination fee.
Terry plans to sell the house at the end of the term for $375,000. If he accomplishes his goal, the outcome will be as follows:
$375,000 sales price
- $162,500 note principle (65% LTV)
- $87,500 down payment (35% on 65% LTV)
- $6,500 origination fee (4% of the $162,500 principle)
- $8,125 interest payments (6 months x 10% interest)
= $110,375 total profit (doesn't include taxes or rehab costs)
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