Edgeworth Lending

About Edgeworth Lending

Edgeworth Lending is a private money lender that has been operating in Fredericksburg, Virginia for over 10 years. They offer real estate loans to investors throughout the state of Virginia. Their loan programs include fix and flip loans, bridge loans, acquisition loans, and investor lines of credit. Their terms are flexible, including funding up to 90% of the purchase price of the property.

Loan Types Offered: Hard Money Loans, Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Apartment, Mixed Use

Areas Served: VA

Lending Guidelines for Edgeworth Lending

Below are the general loan guidelines published on the Edgeworth 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 Edgeworth Lending.

Loan Example 1

Marc takes a private money loan from Edgeworth Lending in order to renovate a condo to resale in Fredericksburg, VA. The sales price of the house is $380,000. The lender agrees to make a loan with a 55% loan-to-value (LTV) so they will extend $209,000 on the property. The loan is interest only, paid monthly, and is for 12 months at 8% interest with 5 origination points paid at the closing.

The borrower must fund a total of $32,400 up front to pay the $171,000 down payment plus the $10,450 origination fee. The lender will collect $1,393 in monthly interest from the Marc. This is computed by taking the total loan value of $209,000, multiplying that by the 8% rate of interest, and then dividing that number by 12. At the expiration of the loan, he sells the renovated house for $456,000. After deducting the $16,720 in interest expenses ($1,393 multiplied times 12 months), the $10,450 origination fee, the $209,000 principle on the loan, and the $171,000 he contributed to closing, he will make a total profit of $48,830 ($456,000 price minus $407,170 in costs). This amount would then be reduced by any building costs paid out of pocket.

Loan Example 2

Edgeworth Lending issues a hard money loan to Jennifer for a rehab project in Fredericksburg, Virginia. The deal includes the following:

$170,000 purchase price
75% loan to value (LTV)
12 month term
13% interest rate
4% origination fee

Based on a $204,000 sales price at the end of the 12 month term, the final numbers for the project would look like this:

$204,000 sales price
- $127,500 loan principle (75% LTV)
- $42,500 down payment (25% on 75% LTV)
- $5,100 origination fee (4% of the $127,500 principle amount)
- $16,575 total interest paid (12 months x 13% interest)
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= $12,325 gross profit (does not include taxes or renovation costs)