Charger Funding

About Charger Funding

Headquartered in Encinitas, CA, Charger Funding is an asset-based lender offering funding throughout Santa Barbara and Santa Cruz. They offer loans for a variety of situations, including short term fix and flip loans, commercial hard money loans, rental property loans, and cash out loans. Their lending guidelines are flexible, including terms up to 1 year, rates ranging between 7% and 12%, and loan amounts ranging from $75,000 to $1,000,000 with a maximum LTV of 80%. They make loans on numerous property types, including single family homes, multi-family, apartment buildings, office buildings, retail spaces, mixed use, and industrial facilities.

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

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

Areas Served: Santa Barbara, Santa Cruz, San Diego County, Los Angeles County, Orange County, San Francisco County, Marin County, Alameda County, San Mateo County, Sonoma County, Napa County, Santa Clara County, Contra Costa County, Solano County

Licenses: California BRE #01888960, NMLS #999380

Lending Guidelines for Charger Funding

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

Loan Example 1

Mable is a real estate investor in Santa Barbara, CA. She locates an older property and decides to remodel it and sell it for a profit. The property costs $240,000 but she doesn't have the full amount so she takes a fix and flip loan with Charger Funding. The borrower will have to bring 45% of the purchase price in cash to the closing based on a 55% loan-to-value stipulated by the lending company. This makes the principle note from Charger Funding $132,000. The parameters of the loan dictate a 12% note for 6 months. They also stipulate a 5 point origination fee, which will also need to be paid when the property closes.

Mable will have to contribute $108,000 at the closing (45% on the 55% loan-to-value), plus she will need to pay the $6,600 origination fee. she will then pay $1,320 monthly to Charger Funding. If Mable achieves her goal of a $312,000 sales price when the loan term expires, she would earn a total profit of $57,480 after repaying the principle on the note and subtracting the money she contributed at closing, the origination fee, and the monthly interest payments.

Loan Example 2

Adela locates a house in Santa Barbara, CA to renovate and resell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from Charger Funding with the following parameters:

$200,000 sales price
80% loan-to-value (LTV)
6 month term
13% interest rate
1% origination fee

Once the rehab project is finished, if Adela sells the house for $260,000, the final numbers would be as follows:

$260,000 sales price
- $160,000 principle (80% LTV)
- $40,000 cash paid at closing (20% on 80% LTV)
- $1,600 origination fee (1% of the $160,000 principle)
- $10,400 total interest paid (6 months x 13% interest)
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= $48,000 total profit (does not include taxes or rehab costs)