Barnett REI Finance

About Barnett REI Finance

Barnett REI Finance is private lender headquartered in Northbrook, IL. They offer funding across the US. They offer long term rental property loans, fix-and-flip loans, and construction loans. Their loan parameters are versatile, including terms starting at 9 months, rates ranging between 9.99% and 14.99%, and loan amounts starting from $85,000 with a maximum LTV of 70% or 90% LTC. They are able to lend funds to all borrowers based on the value of the property. They primarily offer funding on single family homes, multi-family units and new construction.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, New Construction Loans

Property Types Covered: Single Family, Multi Family, Mixed Use

Areas Served: National

Lending Guidelines for Barnett REI Finance

Below are the general loan guidelines published on the Barnett REI Finance 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 Barnett REI Finance.

Loan Example 1

Barnett REI Finance issues a fix-and-flip loan to Betty for a renovation project in Durham, NC, on a property that costs $310,000. The loan to value (LTV) on the deal is 65%. This means that Betty will have to bring 35% of the sales price to the closing and the principle will be $201,500 on the note. The terms of the deal dictate a 14% note for 6 months. They also stipulate a 2 point origination fee, which will also need to be paid at closing.

According to the terms of the deal, Betty will be required to contribute a $4,030 origination fee in addition to 35% of the sales price, or $108,500, since there is a 65% LTV. Barnett REI Finance will collect $2,351 in monthly interest payments from the Betty. This is calculated by taking the total note value of $201,500, multiplying by the 14% interest rate, and then dividing that amount by 12. If Betty accomplishes her goal of a $434,000 sales price at the end of the loan term, she would collect a total profit of $105,865 after repaying the principle and deducting the cash she paid at closing, the origination points, and the monthly interest payments.

Loan Example 2

Barnett REI Finance makes a fix and flip loan to Frederick for a rehab project in Austin, TX. The loan dictates the following:

a) A $240,000 sales price, b) a 85% loan-to-value (LTV), c) a 12 month term, d) a 8% interest rate, and e) a 5% origination fee.

Assuming a $348,000 sales price after the 12 month term, the numbers for the deal would look like this:

$348,000 sales price
- $204,000 note principle (85% LTV)
- $36,000 cash paid at closing (15% on 85% LTV)
- $10,200 origination points (5% of the $204,000 principle amount)
- $16,320 total interest paid (12 months x 8% interest)
-----------------------
= $81,480 total profit (does not include taxes or rehab costs)

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