Boston Property Capital

About Boston Property Capital

Boston Property Capital is a Quincy, MA based private money lender offering funding in Boston. They offer ground up construction loans, hard money loans for commercial properties, short term loans, loans for rental properties, and fix-and-flip loans. They offer loan amounts ranging from $100,000 to $3,000,000 with a maximum LTV of 80%, terms between 3 months and 2 years, and rates ranging between 11% and 15%. They are able to lend funds to any borrower based on the value of the property and do not require a minimum FICO score. They make loans on numerous types of properties, including single family units, multi-family, apartments, offices, retail storefronts, hotels and motels, storage facilities, senior facilities, mixed use buildings, warehouse spaces, industrial facilities, medical offices, and raw land.

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

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

Areas Served: Boston

Lending Guidelines for Boston Property Capital

Below are the general loan guidelines published on the Boston Property Capital 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 Boston Property Capital.

Loan Example 1

Boston Property Capital makes a fix-and-flip loan to Ron for a rehab project in Boston, MA, on a house that is listed for $160,000. As the lender sets a 80% loan-to-value, Ron will have to put 20% down and the total amount of the loan will be $128,000. The terms of the deal also include a two point origination fee which is to be paid at closing and a 18 month, interest only note with a 11% rate of interest.

By the terms of the loan, Ron will be required to contribute a $2,560 origination fee in addition to 20% of the purchase price, or $32,000, since there is a 80% LTV. After the loan is closed and Ron takes the project, he will need to begin making monthly payments of $1,173 to the lender ($128,000 principle x 11% / 12 months). Ron's plan is to finish the renovation within the 18 months and re-sell it for $232,000. If he succeeds he will collect a total profit of $48,320 ($232,000 sales price - $128,000 principle amount - $32,000 down payment - $2,560 origination points - $21,120 in total interest.

Loan Example 2

Eileen is a real estate investor in Boston, MA. She buys an older property for a remodeling project and takes a fix and flip loan from Boston Property Capital with the following features:

a) A $310,000 sales price, b) a 80% loan-to-value (LTV), c) a 6 month term, d) a 9% interest rate, and e) a 2% origination fee.

Eileen intends to sell the house at the end of the term for $449,500. If she achieves this goal, the final numbers would be as follows:

$449,500 sales price
- $248,000 principle (80% LTV)
- $62,000 down payment (20% on 80% LTV)
- $4,960 origination fee (2% of the $248,000 principle)
- $11,160 interest payments (6 months x 9% interest)
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= $123,380 total profit (does not include taxes or rehab costs)

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