Colony American Finance

About Colony American Finance

Colony American Finance is a private money lender in Los Angeles, CA providing funding all across the country. They provide loans for a variety of needs and situations, including loans for rental properties and refinancing. Their lending parameters are versatile, including terms between 5 years and 10 years and loan amounts ranging from $500,000 to $100,000,000 with a maximum LTV of 75%. They do not require their borrowers to have a minimum credit rating to obtain a loan. The focus of their lending is for single family and multi-family.

Loan Types Offered: Investment Property Loans, Refinance / Cash Out Loans

Property Types Covered: Single Family, Multi Family

Areas Served: National

Licenses: License no. 60DBO-43692

Lending Guidelines for Colony American Finance

Below are the general loan guidelines published on the Colony American Finance 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 Colony American Finance.

Loan Example 1

Travis finds a townhouse in Tacoma, WA to rehab and resell. Since he does not have enough cash on-hand to acquire the $160,000 house outright, he decides to take out a private money loan from Colony American Finance. The terms of the deal include a 75% loan to value (LTV), so he must contribute 25% of the price as cash to closing, making the principle loan amount $120,000. The parameters of the loan also include a four point origination fee which is to be paid at closing and a 12 month, interest-only note with a 14% interest rate.

Therefore, the borrower will be required to make a $40,000 down payment in addition to paying a $4,800 origination fee. Once the loan is executed and Travis takes the property, he will need to begin making monthly payments of $1,400 to the lender ($120,000 principle x 14% / 12 months). If Travis sells the house for $200,000 after 12 months, he would make a total profit of $18,400 after subtracting the principle of $120,000, the funds contributed at closing of $40,000, the origination points of $4,800, and the aggregate interest payments of $16,800. This amount does not account for remodeling costs.

Loan Example 2

Tyler locates a townhouse in Scottsdale, AZ to renovate and re-sell. Because he does not have enough cash to buy the property outright, he takes a hard money loan from Colony American Finance with the following parameters:

$170,000 purchase price
75% loan-to-value (LTV)
18 month term
9% interest rate
5% origination fee

After the renovation project is complete, if Tyler sells the house for $255,000, the numbers would be the following:

$255,000 sales price
- $127,500 loan principle (75% LTV)
- $42,500 down payment (25% on 75% LTV)
- $6,375 origination fee (5% of the $127,500 principle)
- $17,213 interest payments (18 months x 9% interest)
-----------------------
= $61,413 gross profit (doesn't include taxes or renovation costs)

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