A&D Mortgage

About A&D Mortgage

A&D Mortgage is private lender headquartered in Hollywood, FL. They offer funding in Florida, California, New Jersey, Pennsylvania, and Texas. They provide commercial hard money loans, hard money refinancing, fix and flip loans, and loans for investments properties. They provide terms up to 5 years, rates starting at 7% , and loan amounts ranging from $75,000 to $5,000,000 with a maximum LTV of 75%. Their lending parameters include a minimum credit rating of 500. They make loans on all of the following types of properties: single family units, multi-family, offices, retail spaces, and mixed use spaces.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, Refinance / Cash Out Loans

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

Areas Served: FL, CA, NJ, PA, TX

Lending Guidelines for A&D Mortgage

Below are the general loan guidelines published on the A&D Mortgage 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 A&D Mortgage.

Loan Example 1

Nathaniel is a real estate investor in Houston, TX. He finds a run-down property for sale and wants to remodel it and flip it for a profit. The property has a cost of $190,000 but he does not have the full amount so he takes a hard money loan with A&D Mortgage. Since the lender sets a 55% loan to value, Nathaniel will need to put 45% down and the amount of the loan will be $104,500. The rate on the loan is 13% for a length of 12 months and the lender requires a five point origination fee at the close. The interest payments are to be paid monthly and the principle amount will be paid back after the property sells.

Nathaniel will need to contribute $85,500 to closing (45% on the 55% loan to value), plus he will pay the $5,225 origination fee. After the loan closes, he will pay A&D Mortgage $1,132 in monthly interest payments, or 13% times $104,500 divided by 12 months in a year. At the end of the note, he sells the rehabed property for $285,000. After deducting the $13,585 in interest payments ($1,132 times 12 months), the $5,225 origination fee, the $104,500 principle on the note, and the $85,500 he contributed to the closing, he will make a gross profit of $76,190 ($285,000 price minus $208,810 in total costs). This profit would be reduced by any rehab costs paid out of pocket.

Loan Example 2

Josefina finds a townhouse in Houston, TX to rehab and sell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from A&D Mortgage with the following parameters:

$290,000 sales price
75% loan-to-value (LTV)
6 month term
8% rate of interest
4% origination fee

Josefina intends to list the house at the end of the term for $377,000. If she achieves this goal, the deal numbers will be the following:

$377,000 sales price
- $217,500 principle (75% LTV)
- $72,500 down payment (25% on 75% LTV)
- $8,700 origination fee (4% of the $217,500 principle)
- $8,700 interest payments (6 months x 8% interest)
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= $69,600 total profit (does not include taxes or renovation costs)

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