Avatar Financial Group

About Avatar Financial Group

Headquartered in Seattle, WA, Avatar Financial Group is a hard money lender providing funding all across the United States. They offer lending solutions for a variety of scenarios, including hard money loans for commercial properties and hard money bridge loans. They issue rates ranging between 7.99% and 9.99%, loan amounts ranging from $1,000,000 to $10,000,000 with a maximum LTV of 70%, and terms up to 2 years. They lend funds to any borrower based on the value of the property and do not require a minimum FICO rating. They will make loans on numerous types of properties, including multi-family, apartments, offices, retail spaces, hotels, storage facilities, mixed use buildings, and warehouse buildings.

Loan Types Offered: Commercial Hard Money Loans, Bridge Loans

Property Types Covered: Multi Family, Apartment, Office, Retail, Hotel, Storage, Mixed Use, Warehouse

Areas Served: National

Lending Guidelines for Avatar Financial Group

Below are the general loan guidelines published on the Avatar Financial Group 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 Avatar Financial Group.

Loan Example 1

Avatar Financial Group issues a hard money loan to Charity for the purchase of a new commercial building after she is denied a commercial mortgage by her bank due to a subpar credit rating. The lender contracts to a 60% loan-to-value (LTV) on the deal and the new property costs $370,000, so they will loan $222,000 and Charity will pay the additional $148,000. The lender also specifies the following terms of the loan: 1) a 8% interest rate, 2) a 18 month term with interest-only payments to be made each month, 3) an origination fee of 1 points paid by the borrower when the deal closes, and 4) no pre-payment penalty. Charity can eliminate the note at any point in time if she pays off the $222,000 of principle, however, she will need to pay $1,480 per month interest payments ($222,000 principle value x 8% interest rate / 12 months in a year) in the interim, or until the note expires. Because there is not a pre-payment penalty, the only other expense she would have is the $2,220 origination points which she will pay when the loan closes.

Loan Example 2

Jeffrey is a an investor in San Antonio, TX. He buys an older house for a renovation project and takes a private money bridge loan from Avatar Financial Group with the following paramters:

$150,000 purchase price
50% loan to value (LTV)
6 month term
9% interest rate
4% origination fee

After the renovation project is complete, if Jeffrey sells the house for $187,500, the numbers would be the following:

$187,500 sales price
- $75,000 note principle (50% LTV)
- $75,000 down payment (50% on 50% LTV)
- $3,000 origination fee (4% of the $75,000 principle)
- $3,375 total interest paid (6 months x 9% interest)
-----------------------
= $31,125 total profit (doesn't include taxes or rehab costs)

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