Delancey Street Lending

About Delancey Street Lending

Headquartered in Los Angeles, CA, Delancey Street Lending is a private lender offering funding in California. They provide loans for many different scenarios, including fix and flip, commercial loans, short-term bridge loans, investments properties, cash-out refinancing, and new construction. They do not require borrowers to have a minimum FICO rating to receive a loan. They will make loans on any type of property, including raw land, and have a maximum loan-to-value of 80%.

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

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical, Church, Land

Areas Served: CA

Lending Guidelines for Delancey Street Lending

Below are the general loan guidelines published on the Delancey Street Lending 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 Delancey Street Lending.

Loan Example 1

Henry is a real estate investor in Los Angeles, CA. He locates a run-down property and decides to remodel it and re-sell it for a profit. The house costs $200,000 but he doesn't have the full amount so he takes a private money loan with Delancey Street Lending. The lender agrees to make a loan with a 70% loan to value (LTV) so they will loan $140,000 on the project. The terms of the note also stipulate a four point origination fee which will be paid at the closing and a 18 month, interest-only note with a 13% interest rate.

The borrower must bring a total of $32,400 upon closing to pay the $60,000 down payment in addition to the $5,600 origination fee. The lender will collect $1,517 in monthly interest payments from the Henry. This is computed by taking the full note value of $140,000, multiplying by the 13% interest rate, and then dividing that amount by 12. Henry's intention is to complete the project by the end of the 18 months and re-sell it for $270,000. If he succeeds he will make a total profit of $37,100 ($270,000 sales price - $140,000 principle amount - $60,000 cash at closing - $5,600 origination fee - $27,300 in total interest.

Loan Example 2

Autumn is a real estate investor in Los Angeles, CA. She locates an older house for a rehab project and obtains a private money loan from Delancey Street Lending with the following terms:

$400,000 purchase price
75% loan-to-value (LTV)
6 month term
9% interest rate
5% origination fee

Autumn plans to list the project at the end of the term for $520,000. If she accomplishes her goal, the outcome would be as follows:

$520,000 sales price
- $300,000 loan principle (75% LTV)
- $100,000 down payment (25% on 75% LTV)
- $15,000 origination points (5% of the $300,000 principle amount)
- $13,500 interest payments (6 months x 9% interest)
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= $91,500 gross profit (doesn't include taxes or rehab costs)