Bluewater Funding

About Bluewater Funding

Bluewater Funding is an asset-based lender in Rockville, MD providing funding throughout Washington DC. They provide lending solutions for many different needs and situations, including commercial loans, fix and flip hard money loans, hard money refinancing, and short term bridge loans. They offer loan amounts starting from $100,000 with a maximum LTV of 75%. They make loans on the following property types: single family homes, multi-family, retail units, mixed use, senior facilities, storage facilities, and industrial buildings.

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

Property Types Covered: Single Family, Multi Family, Retail, Mixed Use, Assisted Living, Storage, Industrial

Areas Served: Washington DC, VA, MD

Lending Guidelines for Bluewater Funding

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

Loan Example 1

Aimee is an investor in Washington DC, DC. She discovers an older property for sale and wants to rehab it and flip it for a profit. The property costs $390,000 but she does not have the full amount so she takes out a fix-and-flip loan with Bluewater Funding. The terms of the loan include a 85% loan-to-value (LTV), so she must contribute 15% of the price as cash at closing, making the principle loan amount $331,500. The rate on the loan is 12% for a length of 18 months and the company requires a four point origination fee at the close. The interest payments are to be paid monthly and the principle amount will be paid back after the property sells.

On top of the $13,260 origination fee, Aimee will also have to fund $58,500 of the purchase with her own funds, or 15% of the purchase price. The monthly interest-only payments will then total $3,315 to the lender. If Aimee sells the project for $487,500 after 18 months, she would then earn a total profit of $24,570 after deducting the principle amount of $331,500, the funds contributed at the close of $58,500, the origination fee of $13,260, and the aggregate interest payments of $59,670. This gross profit does not account for renovation costs.

Loan Example 2

Caroline locates a house in Washington DC, DC to renovate and re-sell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from Bluewater Funding with the following parameters:

a) A $150,000 purchase price, b) a 75% loan-to-value (LTV), c) a 6 month term, d) a 10% interest rate, and e) a 4% origination fee.

Once the rehab project is finished, if Caroline sells the project for $217,500, the outcome would be as follows:

$217,500 sales price
- $112,500 loan principle (75% LTV)
- $37,500 cash paid at closing (25% on 75% LTV)
- $4,500 origination fee (4% of the $112,500 principle)
- $5,625 total interest paid (6 months x 10% interest)
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= $57,375 total profit (doesn't include taxes or renovation costs)