ABC Capital Investments

About ABC Capital Investments

ABC Capital Investments is a Philadelphia, PA based private lender who offers loans all throughout the US. They provide lending solutions for many different scenarios, including long term rental property loans and short term fix and flip loans. The focus of their loans is on single family units and multi-family.

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

Property Types Covered: Single Family, Multi Family

Areas Served: National

Lending Guidelines for ABC Capital Investments

Below are the general loan guidelines published on the ABC Capital Investments 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 ABC Capital Investments.

Loan Example 1

Morris finds a condo in Houston, TX to renovate and re-sell. Since he doesn't have enough cash available to purchase the $170,000 project outright, he decides to take out a fix and flip loan from ABC Capital Investments. Since the lender sets a 85% loan-to-value, Morris will be required to put 15% down so the total amount of the note will be $144,500. The rate on the note is 8% for a length of 6 months and the lender requires a four point origination fee at the close. The interest is to be paid monthly and the principle amount will be repaid after the property sells.

Morris will have to contribute a total of $32,400 up front to pay the $25,500 down payment plus the $5,780 origination fee. The monthly interest only payments will then be $963 to ABC Capital Investments. Assuming he sells the rehabed house for $204,000 at the end of the 6 month term, his gross profit (not including remodeling costs) would be $22,440. This is calculated by taking the purchase price ($204,000) and subtracting the original principle ($144,500), the origination cost ($5,780), the funds he contributed to closing ($25,500), and the total interest payments ($5,780).

Loan Example 2

Virgie finds a townhouse in Santa Rosa, CA to renovate and sell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from ABC Capital Investments with the following parameters:

a) A $400,000 purchase price, b) a 50% loan to value (LTV), c) a 18 month term, d) a 13% interest rate, and e) a 4% origination fee.

If Virgie succeeds in her goal of a $500,000 sales price, the numbers of the project will be the following:

$500,000 sales price
- $200,000 loan principle (50% LTV)
- $200,000 down payment (50% on 50% LTV)
- $8,000 origination fee (4% of the $200,000 principle amount)
- $39,000 total interest paid (18 months x 13% interest)
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= $53,000 total profit (doesn't include taxes or renovation costs)