BN Loans Inc

About BN Loans Inc

BN Loans Inc is hard money lender headquartered in Costa Mesa, CA. They offer loans throughout California. They provide fix-and-flip loans, private commercial loans, bridge loans, and rental property loans. They issue terms between 10 years and 30 years, loans with a maximum LTV of 70%, and rates starting at 5.75% . They will make loans on the following types of properties: single family, multi-family, apartment buildings, offices, retail units, mixed use buildings, industrial buildings, and warehouse spaces.

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

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Mixed Use, Industrial, Warehouse

Areas Served: CA

Licenses: NMLS #1086543, CA Bur Real Estate Real Estate Broker No. 02001922

Lending Guidelines for BN Loans Inc

Below are the general loan guidelines published on the BN Loans Inc 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 BN Loans Inc.

Loan Example 1

Troy is a house flipper in Los Angeles, CA. He discovers a run-down property and wants to rehab it and flip it for a profit. The house has a cost of $360,000 but he doesn't have the full amount so he takes out a fix and flip loan with BN Loans Inc. The loan to value (LTV) on the loan is 50%. This means that Troy will have to bring 50% of the sales price to closing and the principle amount will be $180,000 on the loan. The rate on the loan is 8% for a length of 18 months and the company requires a four point origination fee at the closing. The interest is to be paid monthly and the principle will be returned after the sale of the property.

Accordingly, Troy will be required to make a $180,000 down payment in addition to paying a $7,200 origination fee. The monthly interest-only payments will then be $1,200 to BN Loans Inc. If he sells the renovated house for $432,000 at the end of the 18 month term, his gross profit (not including remodeling costs) would be $43,200. This is calculated by taking the sales price ($432,000) and subtracting the principle ($180,000), the origination fee ($7,200), the money he contributed to closing ($180,000), and the total interest expenses ($21,600).

Loan Example 2

Elinor takes a private money loan from BN Loans Inc in order to remodel a property to re-sell in Los Angeles, CA. The deal has the following parameters:

a) A $210,000 purchase price, b) a 60% loan to value (LTV), c) a 18 month term, d) a 9% interest rate, and e) a 3% origination fee.

If Elinor achieves her goal of a $304,500 sales price, the numbers of the project will be as follows:

$304,500 sales price
- $126,000 principle on note (60% LTV)
- $84,000 cash paid at closing (40% on 60% LTV)
- $3,780 origination points (3% of the $126,000 principle)
- $17,010 interest payments (18 months x 9% interest)
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= $73,710 gross profit (does not include taxes or renovation costs)

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