Cherrywood Commercial

About Cherrywood Commercial

Cherrywood Commercial is a Diamnond Bar, CA based private money lender who provides loans in 48 states throughout the United States. They provide lending solutions for many different situations, including short term bridge loans and commercial hard money loans. Their lending guidelines are versatile, including loan amounts ranging from $200,000 to $5,000,000 and rates ranging between 6% and 7%. They require a minimum FICO score of 650 to obtain a loan. They offer loans on most property types, including multi-family, mixed use spaces, office units, retail units, industrial buildings, and storage facilities.

Loan Types Offered: Commercial Hard Money Loans, Bridge Loans

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

Areas Served: AL, AR, AZ, CA, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MN, MO, MS, MT, NC, NE, NH, NJ, NM, NV, NY, OH, OK, OR, PA, RI, SC, TN, TX, UT, VA, VT, WA, WI, WV, WY

Lending Guidelines for Cherrywood Commercial

Below are the general loan guidelines published on the Cherrywood Commercial 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 Cherrywood Commercial.

Loan Example 1

To facilitate his growing business, Edward decides to purchase a new warehouse. After being denied a commercial mortgage from his bank, he secures a commercial hard money loan from Cherrywood Commercial. The new property will cost $250,000. Because there is a 55% loan-to-value (LTV) stipulated by the lender, the loan principle amount is $137,500. The additional $112,500 will be the responsibility of the borrower. Additionally, the lender requires a 1 point origination fee to go along with the 12%, 6 month term on the loan. They agree to not enforce a pre-payment penalty in the event that Edward pays off the note before it expires. By the rules of this loan, Edward will need to pay an origination fee of $1,375 at closing (1% x $137,500 principle) and will then start making payments of $1,375 monthly ($137,500 principle x 12% interest / 12 months). he will also make a balloon payment of the $137,500 principle upon expiration of the note, or sooner if he decides.

Loan Example 2

Steven is a real estate investor in Houston, TX. He purchases a run-down house for a remodeling project and takes a bridge loan from Cherrywood Commercial with the following features:

$190,000 purchase price
80% loan-to-value (LTV)
6 month term
14% interest rate
2% origination fee

Steven intends to list the property when the note expires for $256,500. If he achieves this goal, the deal numbers would be as follows:

$256,500 sales price
- $152,000 principle (80% LTV)
- $38,000 down payment (20% on 80% LTV)
- $3,040 origination points (2% of the $152,000 principle)
- $10,640 total interest paid (6 months x 14% interest)
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= $52,820 gross profit (does not include taxes or renovation costs)