Aileron Residential Lending

About Aileron Residential Lending

Aileron Residential Lending is a Tampa, FL based hard money lender. They offer loans in California and Florida. They offer loans for a variety of situations and needs, including bridge loans and fix-and-flip loans. They offer loans with a maximum LTV of 65% and rates ranging between 9% and 12%. They lend funds to any borrower based on the value of the property and not on a minimum credit rating. They will consider different lending requests but usually focus on single family homes.

Loan Types Offered: Fix and Flip Loans, Bridge Loans

Property Types Covered: Single Family

Areas Served: CA, FL

Lending Guidelines for Aileron Residential Lending

Below are the general loan guidelines published on the Aileron Residential Lending 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 Aileron Residential Lending.

Loan Example 1

Bill is an investor in Los Angeles, CA. He locates a run-down property for sale and wants to rehab it and sell it for a profit. The house costs $360,000 but he does not have the full amount so he obtains a fix and flip loan with Aileron Residential Lending. The lender agrees to make a note with a 50% loan-to-value (LTV) so they are willing to loan $180,000 on the house. The deal also has the following features: 1) a 12 month length, 2) a 10% interest-only note, and 3) a four percent origination fee.

Bill must bring a total of $32,400 upon closing to pay the $180,000 down payment in addition to the $7,200 origination fee. After the deal is closed and Bill takes the project, he will need to begin making payments each month of $1,500 to Aileron Residential Lending ($180,000 principle x 10% / 12 months). If Bill sells the property for $432,000 after 12 months, he would make a total profit of $46,800 after deducting the principle of $180,000, the funds contributed at the close of $180,000, the origination points of $7,200, and the total interest payments of $18,000. This gross profit does not include remodeling costs.

Loan Example 2

Summer finds a property in Los Angeles, CA to remodel and re-sell. Since she does not have enough cash to buy the property outright, she takes a fix and flip loan from Aileron Residential Lending with the following parameters:

a) A $400,000 sales price, b) a 85% loan to value (LTV), c) a 12 month term, d) a 10% interest rate, and e) a 2% origination fee.

Assuming a $520,000 sales price after the 12 month term, the outcome for the project would look like this:

$520,000 sales price
- $340,000 principle (85% LTV)
- $60,000 down payment (15% on 85% LTV)
- $6,800 origination fee (2% of the $340,000 principle amount)
- $34,000 interest payments (12 months x 10% interest)
-----------------------
= $79,200 total profit (does not include taxes or renovation costs)

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