Better Loans and Realty

About Better Loans and Realty

Better Loans and Realty is an asset-based lender headquartered in La Canada, CA offering funding in California. They offer lending solutions for many different scenarios, including commercial loans, ground up construction loans, rental property loans, and short term fix and flip loans. They offer terms between 12 months and 36 months, rates ranging between 8.5% and 12%, and loan amounts ranging from $50,000 to $20,000,000 with a maximum LTV of 60%. They do not require a minimum FICO score to receive a loan. They provide loans on the following types of properties: single family homes, multi family, apartments, office units, retail units, hotels/motels, storage buildings, senior living facilities, mixed use spaces, warehouse spaces, industrial buildings, medical buildings, and undeveloped land.

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

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical, Land

Areas Served: CA

Lending Guidelines for Better Loans and Realty

Below are the general loan guidelines published on the Better Loans and Realty 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 Better Loans and Realty.

Loan Example 1

Beatriz closes on a $190,000 renovation project in Los Angeles, CA, using a hard money loan from Better Loans and Realty. The terms of the loan include a 80% loan to value (LTV), so she must contribute 20% of the price as cash at closing, making the principle loan amount $152,000. The loan is interest-only, with monthly payments, and is for 12 months at 11% interest with 4 points to be paid at the closing.

Accordingly, Beatriz will have to contribute a $38,000 down payment plus pay a $6,080 origination fee. Once the deal closes, she will have to pay Better Loans and Realty $1,393 in monthly interest payments, or 11% multiplied times $152,000 divided by 12 months in a year. If Beatriz sells the house for $266,000 after 12 months, she would then earn a total profit of $53,200 after subtracting the principle amount of $152,000, the money contributed at the close of $38,000, the origination fee of $6,080, and the aggregate interest payments of $16,720. This amount doesn't include rehab costs.

Loan Example 2

Better Loans and Realty makes a hard money loan to Harry for a renovation project in Los Angeles, CA. The loan dictates the following:

$320,000 sales price
80% loan to value (LTV)
6 month term
12% interest rate
3% origination fee

If Harry achieves his goal of a $432,000 sales price, the final numbers of the project will be as follows:

$432,000 sales price
- $256,000 loan principle (80% LTV)
- $64,000 down payment (20% on 80% LTV)
- $7,680 origination points (3% of the $256,000 principle amount)
- $15,360 interest payments (6 months x 12% interest)
-----------------------
= $88,960 total profit (does not include taxes or renovation costs)

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