Direct Commercial Capital

About Direct Commercial Capital

Direct Commercial Capital is a Lakeland, FL based private money lender. They offer loans throughout Florida. They provide loans for many different situations, including short term bridge loans, private refinancing, and commercial hard money loans. They issue rates ranging between 9.9% and 15%, terms between 6 months and 24 months, and loan amounts ranging from $200,000 to $500,000 with a maximum LTV of 65%. They offer loans on numerous types of properties, including multi family, apartment buildings, office buildings, retail storefronts, storage facilities, mixed use, and medical offices.

Loan Types Offered: Commercial Hard Money Loans, Refinance / Cash Out Loans, Bridge Loans

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

Areas Served: FL

Lending Guidelines for Direct Commercial Capital

Below are the general loan guidelines published on the Direct Commercial Capital 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 Direct Commercial Capital.

Loan Example 1

Marion runs a small business in Miami, FL and needs to buy a new commercial building for her operations. Since she is unable to get a conforming loan from a bank, she turns to Direct Commercial Capital for a commercial hard money loan. The building costs $310,000. Marion will need to put 30% down, or $93,000, because the lender will loan only 70% of the acquisition (the loan to value or "LTV"). Accordingly, the principle amount on the loan is $217,000. Additionally, the lender requires a 4 point origination fee to go along with the 12%, 6 month term on the loan. They will not charge a pre-payment penalty in case Marion pays off the loan before it expires. Marion can eliminate the loan at any point if she pays off the $217,000 of principle, but she will be required to make $2,170 monthly interest payments ($217,000 principle x 12% interest / 12 months) in the meantime, or until the loan expires. Because there is no pre-payment penalty, the only additional expense she would have is the $8,680 origination points which she will contribute when the loan closes.

Loan Example 2

Tracy finds a property in Miami, FL to remodel and sell. Since he does not have enough cash to buy the property outright, he takes a bridge loan from Direct Commercial Capital with the following parameters:

a) A $220,000 purchase price, b) a 80% loan-to-value (LTV), c) a 6 month term, d) a 10% interest rate, and e) a 5% origination fee.

Based on a $308,000 sales price at the end of the 6 month term, the numbers for this deal would look like this:

$308,000 sales price
- $176,000 principle (80% LTV)
- $44,000 down payment (20% on 80% LTV)
- $8,800 origination fee (5% of the $176,000 principle amount)
- $8,800 total interest paid (6 months x 10% interest)
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= $70,400 gross profit (doesn't include taxes or renovation costs)

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