Cervenka and Lukes Capital Partners

About Cervenka and Lukes Capital Partners

Cervenka and Lukes Capital Partners is a Pasadena, CA based private money lender. They provide funding in California. They provide construction loans, short term loans, commercial loans, and fix and flip loans. They offer rates ranging between 8% and 12%, terms between 24 months and 36 months, and loan amounts ranging from $100,000 to $10,000,000 with a maximum LTV of 75%. They provide loans on all of the following types of properties: single family homes, multi-family, apartment buildings, office units, retail units, hotels/motels, storage facilities, senior communities, mixed use spaces, warehouses, industrial buildings, medical facilities, raw land, and churches.

Loan Types Offered: 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, Church

Areas Served: CA

Lending Guidelines for Cervenka and Lukes Capital Partners

Below are the general loan guidelines published on the Cervenka and Lukes Capital Partners 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 Cervenka and Lukes Capital Partners.

Loan Example 1

Cervenka and Lukes Capital Partners makes a fix and flip loan to Bryan for a renovation project in Los Angeles, CA, on a house that costs $380,000. The borrower will have to bring 30% of the sales price in cash to the closing based on a 70% loan to value set by the lender. This makes the loan principle from Cervenka and Lukes Capital Partners $266,000. The parameters of the note also stipulate a two point origination fee that is to be paid at the closing and a 6 month, interest only note with a 13% rate of interest.

Accordingly, Bryan will need to contribute a $114,000 down payment in addition to paying a $5,320 origination fee. The monthly interest-only payments will then be $2,882 to the lender. If Bryan sells the rehabed house for $494,000 at the end of the 6 month term, his total profit (not accounting for rehab expenses) would be $91,390. This is calculated by taking the purchase price ($494,000) and subtracting the original principle ($266,000), the origination cost ($5,320), the money he contributed to closing ($114,000), and the total interest payments ($17,290).

Loan Example 2

Courtney locates a duplex in Los Angeles, CA to remodel and re-sell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from Cervenka and Lukes Capital Partners with the following parameters:

$270,000 purchase price
55% loan to value (LTV)
6 month term
14% rate of interest
4% origination fee

Assuming a $405,000 sales price at the end of the 6 month term, the outcome for the project would look like this:

$405,000 sales price
- $148,500 note principle (55% LTV)
- $121,500 down payment (45% on 55% LTV)
- $5,940 origination points (4% of the $148,500 principle)
- $10,395 total interest paid (6 months x 14% interest)
-----------------------
= $118,665 total profit (doesn't include taxes or renovation costs)

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