About Watershed Renovation Capital
Headquartered in Alexandria, VA, Watershed Renovation Capital is a hard money lender providing funding throughout Washington DC, Maryland, and Virginia. Their lending focus is mainly on fix and flip hard money loans. They offer rates ranging between 12% and 16%. They primarily offer funding on single family residences.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family
Areas Served: DC, MD, VA
Lending Guidelines for Watershed Renovation Capital
Below are the general loan guidelines published on the Watershed Renovation Capital website. Please confirm all terms and rates directly with the lender.
Fix and Flip LoansLoan Amounts: N/A
Available Rates: 12% - 16%
Typical Terms: N/A
Points Charged: 4% - 5%
Max Loan-to-Value (LTV): N/A
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: YES
Prepayment Penalties: NO
Minimum FICO Score: N/A
Time to Close: N/A
The following loans are for education purposes only. They do not represent actual loans executed by Watershed Renovation Capital.
Loan Example 1
Alfredo takes a fix and flip loan from Watershed Renovation Capital in order to remodel a condo to flip in Baltimore, MD. The sales price of the property is $230,000. As the lender agrees to a 60% loan to value, Alfredo will need to put 40% down and the amount of the loan will be $138,000. The loan is interest only, with monthly payments, and is for 6 months at 13% interest with 3 points to be paid when the deal closes.
On top of the $4,140 origination fee, Alfredo will also need to fund $92,000 of the purchase with his own cash, or 40% of the sales price. he must then pay $1,495 monthly to the lender. If Alfredo achieves his goal of a $276,000 total sales price when the loan expires, he would pocket a gross profit of $32,890 after repaying the principle amount and subtracting the cash he paid at closing, the origination points, and the monthly interest payments.
Loan Example 2
Winnie is a real estate investor in Baltimore, MD. She purchases a run-down house for a rehab project and takes out a hard money loan from Watershed Renovation Capital with the following features:
$370,000 purchase price
65% loan to value (LTV)
6 month term
14% rate of interest
1% origination fee
Winnie plans to list the house at the end of the term for $518,000. If she succeeds, the outcome will be the following:
$518,000 sales price
- $240,500 note principle (65% LTV)
- $129,500 down payment (35% on 65% LTV)
- $2,405 origination points (1% of the $240,500 principle)
- $16,835 total interest paid (6 months x 14% interest)
= $128,760 total profit (does not include taxes or renovation costs)
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