BSIP Capital

About BSIP Capital

BSIP Capital is a Temple, TX based hard money lender. They offer loans throughout the country. They provide lending solutions for a variety of needs and situations, including commercial loans, hard money refinancing, long term rental property loans, hard money construction loans, and fix-and-flip loans. They provide terms between 3 months and 2 years and loan amounts starting at $30,000. They are able to lend funds to any borrower based on the value of the property and not on a minimum FICO score. The focus of their loans is for single family homes and multi family.

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

Property Types Covered: Single Family, Multi Family

Areas Served: National

Lending Guidelines for BSIP Capital

Below are the general loan guidelines published on the BSIP 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 BSIP Capital.

Loan Example 1

BSIP Capital issues a private money loan to Charlotte for a remodeling project in Salem, OR, on a house that is listed for $370,000. The lender agrees to make a note with a 65% loan to value (LTV) so they are willing to loan $240,500 on the project. The interest rate on the note is 9% for a length of 12 months and the lender requires a one point origination fee at closing. The interest is to be paid monthly and the principle will be repaid after the property sells.

According to the terms of the loan, Charlotte will have to contribute a $2,405 origination fee in addition to 35% of the purchase price, or $129,500, since there is a 65% LTV. BSIP Capital will collect $1,804 in monthly interest payments from the Charlotte. This is computed by taking the full note value of $240,500, multiplying by the 9% rate of interest, and then dividing that amount by 12. At the expiration of the note, she sells the renovated house for $444,000. After deducting the $21,645 in interest payments ($1,804 multiplied by 12 months), the $2,405 origination fee, the $240,500 principle on the note, and the $129,500 she brought to closing, she will earn a gross profit of $49,950 ($444,000 sales price minus $394,050 in costs). This profit would then be reduced by any rehab costs paid by the borrow.

Loan Example 2

BSIP Capital makes a hard money loan to Donald for a remodeling project in Memphis, TN. The deal dictates the following:

a) A $360,000 sales price, b) a 60% loan-to-value (LTV), c) a 12 month term, d) a 14% interest rate, and e) a 5% origination fee.

Donald plans to list the house at the end of the term for $522,000. If he achieves this goal, the outcome would be as follows:

$522,000 sales price
- $216,000 note principle (60% LTV)
- $144,000 cash paid at closing (40% on 60% LTV)
- $10,800 origination fee (5% of the $216,000 principle)
- $30,240 interest payments (12 months x 14% interest)
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= $120,960 total profit (doesn't include taxes or renovation costs)

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