Diplomat Property Solutions

About Diplomat Property Solutions

Headquartered in Miami, FL, Diplomat Property Solutions is a hard money lender providing funding throughout Broward County, Miami-Dade County, Palm Beach County, and Monroe County. They provide lending solutions for many different situations and needs, including loans for rental properties and fix and flip loans. Their loan guidelines are versatile, including terms up to 6 months and rates ranging from 15%. They primarily provide funding for single family units and multi-family units.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: Broward County, Miami-Dade County, Palm Beach County, Monroe County

Lending Guidelines for Diplomat Property Solutions

Below are the general loan guidelines published on the Diplomat Property Solutions 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 Diplomat Property Solutions.

Loan Example 1

Kirk is an investor in Miami, FL. He discovers an older property for sale and decides to remodel it and sell it for a profit. The house has a cost of $350,000 but he doesn't have the full amount so he takes a hard money loan with Diplomat Property Solutions. The loan to value (LTV) on the deal is 65%. This means that Kirk will have to bring 35% of the sales price to closing and the principle amount will be $227,500 on the deal. The note is interest only, paid monthly, and is for 6 months at 11% interest with 3 origination points to be paid at closing.

Kirk will have to bring $122,500 at the closing (35% on the 65% loan to value), plus he will need to pay the $6,825 origination fee. After the deal is closed and Kirk takes over the project, he will need to begin making monthly payments of $2,085 to the lender ($227,500 principle x 11% / 12 months). If Kirk meets his goal of a $455,000 total sales price when the loan term expires, he would make a total profit of $85,663 after re-paying the principle and deducting the cash he contributed at closing, the origination points, and the total monthly interest payments.

Loan Example 2

Diplomat Property Solutions issues a fix and flip loan to Dean for a remodeling project in Miami, FL. The loan dictates the following:

a) A $320,000 purchase price, b) a 50% loan to value (LTV), c) a 6 month term, d) a 14% interest rate, and e) a 2% origination fee.

If Dean accomplishes his goal of a $416,000 sales price, the numbers of the deal would be as follows:

$416,000 sales price
- $160,000 loan principle (50% LTV)
- $160,000 down payment (50% on 50% LTV)
- $3,200 origination fee (2% of the $160,000 principle amount)
- $11,200 total interest paid (6 months x 14% interest)
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= $81,600 gross profit (doesn't include taxes or renovation costs)

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