Blue Funding

About Blue Funding

Headquartered in New York, NY, Blue Funding is a hard money lender providing loans throughout New York and Brooklyn. They offer lending solutions for a variety of scenarios, including fix and flip hard money loans, long term rental property loans, ground up construction loans, private refinancing, hard money loans for commercial properties, and short term bridge loans. They provide loan amounts ranging from $100,000 to $5,000,000 with a maximum LTV of 65%, rates ranging between 12% and 14%, and terms between 1 year and 5 years. They provide loans on the following types of properties: single family residences, multi-family units, apartments, offices, retail spaces, hotels and motels, storage buildings, assisted living facilities, mixed use, warehouse spaces, industrial facilities, and medical facilities.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Refinance / Cash Out Loans, Bridge Loans

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

Areas Served: New York, Brooklyn

Lending Guidelines for Blue Funding

Below are the general loan guidelines published on the Blue Funding 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 Blue Funding.

Loan Example 1

Blue Funding issues a private money loan to Paul for a renovation project in New York, NY, on a house that is listed for $150,000. The terms of the note include a 60% loan-to-value (LTV), so he must bring 40% of the price as cash at closing, making the principle note amount $90,000. The deal also has these features: 1) a 6 month term, 2) a 8% interest only note, and 3) a three point origination fee.

In accordance with the terms of the note, Paul will have to pay a $2,700 origination fee plus 40% of the purchase price, or $60,000, since there is a 60% LTV. Blue Funding will collect $600 in monthly interest payments from the Paul. This is calculated by taking the full note amount of $90,000, multiplying that by the 8% rate of interest, and then dividing that amount by 12. Assuming he sells the renovated project for $187,500 at the end of the 6 month term, his total profit (not including rehab expenses) would be $31,200. This is calculated by taking the purchase price ($187,500) and subtracting the original principle ($90,000), the origination fee ($2,700), the money he contributed to closing ($60,000), and the total interest payments ($3,600).

Loan Example 2

Tameka is a an investor in New York, NY. She locates a run-down townhouse for a rehab project and obtains a fix and flip loan from Blue Funding with the following paramters:

a) A $320,000 purchase price, b) a 75% loan to value (LTV), c) a 12 month term, d) a 8% interest rate, and e) a 2% origination fee.

Assuming a $464,000 sales price after the 12 month term, the final numbers for this project would look like the following:

$464,000 sales price
- $240,000 loan principle (75% LTV)
- $80,000 down payment (25% on 75% LTV)
- $4,800 origination fee (2% of the $240,000 principle amount)
- $19,200 total interest paid (12 months x 8% interest)
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= $120,000 total profit (doesn't include taxes or rehab costs)

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