Abel Commercial Funding

About Abel Commercial Funding

Abel Commercial Funding is a Rockville, MD based private lender offering funding throughout the US. They provide commercial hard money loans, short term bridge loans, and fix and flip hard money loans. Their lending parameters are versatile, including rates ranging between 8.5% and 12.99%, loan amounts ranging from $60,000 to $10,000,000 with a maximum LTV of 75%, and terms up to 24 months. They provide loans on various property types, including single family, multi-family units, apartment buildings, office buildings, retail storefronts, hotels/motels, storage facilities, senior communities, mixed use spaces, warehouse spaces, industrial buildings, medical offices, and undeveloped land.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical, Land

Areas Served: National

Lending Guidelines for Abel Commercial Funding

Below are the general loan guidelines published on the Abel Commercial Funding 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 Abel Commercial Funding.

Loan Example 1

Clarissa is a house flipper in Lubbock, TX. She locates an older property and decides to renovate it and sell it for a profit. The property costs $280,000 but she does not have the full amount so she obtains a private money loan with Abel Commercial Funding. The loan-to-value (LTV) on the loan is 65%. This means Clarissa will need to bring 35% of the purchase price to the closing and the principle will be $182,000 on the deal. The note is interest-only, with monthly payments, and is for 18 months at 14% interest with 3 points to be paid at the closing.

In addition to paying the $5,460 origination fee, Clarissa will also have to fund $98,000 of the purchase with her own cash, or 35% of the purchase price. Once the deal is closed and Clarissa takes over the property, she will need to begin making monthly payments of $2,123 to Abel Commercial Funding ($182,000 principle x 14% / 12 months). If Clarissa sells the property for $336,000 after 18 months, she would realize a total profit of $12,320 after subtracting the original principle of $182,000, the funds paid at the close of $98,000, the origination fee of $5,460, and the aggregate interest payments of $38,220. This gross profit does not include building costs.

Loan Example 2

Trudy locates a property in Santa Ana, CA to rehab and sell. Since she does not have enough cash to buy the property outright, she takes a fix and flip loan from Abel Commercial Funding with the following parameters:

a) A $190,000 sales price, b) a 50% loan-to-value (LTV), c) a 6 month term, d) a 10% interest rate, and e) a 2% origination fee.

If Trudy accomplishes her goal of a $266,000 sales price, the outcome of the project would be the following:

$266,000 sales price
- $95,000 principle (50% LTV)
- $95,000 cash paid at closing (50% on 50% LTV)
- $1,900 origination fee (2% of the $95,000 principle)
- $4,750 total interest paid (6 months x 10% interest)
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= $69,350 gross profit (does not include taxes or rehab costs)

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