Action Loan

About Action Loan

Action Loan is a Louisville, KY based hard money lender who provides funding in Louisville and Fort Lauderdale. They provide loans for many different scenarios, including fix and flip loans, new construction loans, and commercial hard money loans. They make loans on most types of properties, including single family residences, multi family, apartments, offices, retail storefronts, and mixed use.

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

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

Areas Served: Louisville, Fort Lauderdale

Lending Guidelines for Action Loan

Below are the general loan guidelines published on the Action Loan 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 Action Loan.

Loan Example 1

Curtis takes a hard money loan from Action Loan in order to rehab a property to resale in Louisville, KY. The list price of the house is $290,000. The lender agrees to write a note with a 80% loan-to-value (LTV) so they will loan $232,000 on the house. The parameters of the loan also include a three percent origination fee that will be paid at the closing and a 6 month, interest only note with a 10% interest rate.

By the terms of the loan, Curtis will have to contribute a $6,960 origination fee plus 20% of the purchase price, or $58,000, based on the 80% LTV. Once the deal is executed and Curtis takes over the property, he will begin making payments each month of $1,933 to the lender ($232,000 principle x 10% / 12 months). If Curtis sells the rehabed house for $391,500 at the end of the 6 month term, his gross profit (not including renovation costs) would be $82,940. This is computed by taking the sales price ($391,500) and subtracting the original note amount ($232,000), the origination fee ($6,960), the money he brought to closing ($58,000), and the total interest expenses ($11,600).

Loan Example 2

Alta takes a private money loan from Action Loan in order to remodel a house to resell in Louisville, KY. The deal has the following parameters:

$360,000 sales price
55% loan to value (LTV)
6 month term
12% rate of interest
1% origination fee

If Alta accomplishes her goal of a $432,000 sales price, the final numbers of the deal will be the following:

$432,000 sales price
- $198,000 principle on note (55% LTV)
- $162,000 cash paid at closing (45% on 55% LTV)
- $1,980 origination fee (1% of the $198,000 principle)
- $11,880 interest payments (6 months x 12% interest)
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= $58,140 gross profit (does not include taxes or renovation costs)