Asset Avenue

About Asset Avenue

Asset Avenue is private money lender based in Los Angeles, CA. They provide loans in 44 states across the United States. They provide loans for a variety of needs and situations, including short term loans, investment property loans, cash out hard money loans, and fix and flip hard money loans. Their lending guidelines are versatile, including loan amounts ranging from $150,000 to $2,000,000 with a maximum LTV of 85%. They primarily offer funding for single family and multi-family units.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Refinance / Cash Out Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family

Areas Served: AL, AR, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, NE, NH, NJ, NM, NY, OH, OK, PA, RI, SC, TN, TX, UT, VA, WA, WI, WV, WY

Lending Guidelines for Asset Avenue

Below are the general loan guidelines published on the Asset Avenue 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 Asset Avenue.

Loan Example 1

Alta closes on a $180,000 rehab project in Houston, TX, using a fix-and-flip loan from Asset Avenue. Because the lender agrees to a 55% loan-to-value, Alta will need to put 45% down so the principle amount of the note will be $99,000. The loan also has these features: 1) a 12 month length, 2) a 9% interest-only note, and 3) a four point origination fee.

Alta will have to contribute a total of $32,400 upon closing to pay the $81,000 down payment plus the $3,960 origination fee. she must then pay $743 per month to the lender. At the end of the note, she sells the renovated house for $243,000. After subtracting the $8,910 in interest expenses ($743 multiplied by 12 months), the $3,960 origination fee, the $99,000 principle on the note, and the $81,000 she contributed to closing, she will make a gross profit of $50,130 ($243,000 sales price minus $192,870 in costs). This profit would be reduced by any building costs paid by Alta.

Loan Example 2

Corrine finds a duplex in Houston, TX 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 Asset Avenue with the following parameters:

a) A $380,000 sales price, b) a 80% loan-to-value (LTV), c) a 6 month term, d) a 10% interest rate, and e) a 5% origination fee.

Assuming a $494,000 sales price at the end of the 6 month term, the outcome for the project would look like this:

$494,000 sales price
- $304,000 principle on note (80% LTV)
- $76,000 down payment (20% on 80% LTV)
- $15,200 origination points (5% of the $304,000 principle)
- $15,200 total interest paid (6 months x 10% interest)
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= $83,600 total profit (does not include taxes or rehab costs)

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