Commercial Lending LLC

About Commercial Lending LLC

Commercial Lending LLC is a private money lender in Clifton, VA offering loans throughout Washington DC, Maryland, and Virginia. They provide loans for many different situations, including ground-up construction loans and fix and flip hard money loans. They primarily provide funding on single family, multi-family units, and undeveloped land.

Loan Types Offered: Fix and Flip Loans, New Construction Loans

Property Types Covered: Single Family, Multi Family, Land

Areas Served: DC, MD, VA

Lending Guidelines for Commercial Lending LLC

Below are the general loan guidelines published on the Commercial Lending LLC 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 Commercial Lending LLC.

Loan Example 1

Commercial Lending LLC issues a hard money loan to Francis for a remodeling project in Baltimore, MD, on a property that costs $380,000. The loan to value (LTV) on the deal is 65%. This means Francis will need to bring 35% of the purchase price to closing and the principle will be $247,000 on the loan. The parameters of the loan dictate a 14% note for 18 months. They also require a 1 point origination fee, that will also have to be paid at closing.

According to the parameters of the note, Francis will have to contribute a $2,470 origination fee plus 35% of the purchase price, or $133,000, since there is a 65% LTV. Once the deal closes, she will have to pay the lender $2,882 in monthly interest payments, or 14% multiplied by $247,000 divided by 12 months in the year. At the expiration of the note, she sells the renovated property for $532,000. After subtracting the $51,870 in interest expenses ($2,882 multiplied by 18 months), the $2,470 origination fee, the $247,000 principle on the note, and the $133,000 she contributed to closing, she will make a total profit of $97,660 ($532,000 price minus $434,340 in costs). This profit would be reduced by any rehab costs paid out of pocket.

Loan Example 2

Julio locates a property in Baltimore, MD to renovate and re-sell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from Commercial Lending LLC with the following parameters:

$270,000 sales price
60% loan to value (LTV)
18 month term
9% interest rate
4% origination fee

Once the rehab project is complete, if Julio sells the project for $405,000, the final numbers would be the following:

$405,000 sales price
- $162,000 principle (60% LTV)
- $108,000 down payment (40% on 60% LTV)
- $6,480 origination fee (4% of the $162,000 principle)
- $21,870 total interest paid (18 months x 9% interest)
-----------------------
= $106,650 gross profit (does not include taxes or rehab costs)

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