Forerunner Funding, Inc

About Forerunner Funding, Inc

Forerunner Funding, Inc is a private money lender headquartered in Honolulu, HI providing funding in Hawaii. They offer loans for many different situations, including private commercial loans, short term bridge loans, and short term fix and flip loans. Their lending parameters are flexible, including terms between 6 months and 30 years. They provide loans on various types of properties, including single family units, multi family residences, apartment buildings, offices, retail spaces, hotels and motels, storage facilities, senior housing facilities, mixed use spaces, warehouse buildings, industrial facilities, medical facilities, and undeveloped land.

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

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

Areas Served: HI

Lending Guidelines for Forerunner Funding, Inc

Below are the general loan guidelines published on the Forerunner Funding, Inc 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 Forerunner Funding, Inc.

Loan Example 1

Kristen finds a townhouse in Honolulu, HI to rehab and resell. Since she does not have enough cash available to purchase the $340,000 property outright, she takes out a fix-and-flip loan from Forerunner Funding, Inc. The loan to value (LTV) on the deal is 85%. This means that Kristen will have to bring 15% of the sales price to the closing and the principle amount will be $289,000 on the note. The terms of the note also stipulate a four percent origination fee which will be paid at the closing and a 12 month, interest-only note with a 12% rate of interest.

Accordingly, the borrower will be required to contribute a $51,000 down payment in addition to paying a $11,560 origination fee. Once the loan closes, she will need to pay Forerunner Funding, Inc $2,890 in monthly interest fees, or 12% multiplied times $289,000 divided by 12 months in the year. At the end of the loan, she sells the renovated house for $425,000. After subtracting the $34,680 in total interest payments ($2,890 multiplied times 12 months), the $11,560 origination fee, the $289,000 principle amount on the loan, and the $51,000 she brought to the closing, she will earn a total profit of $38,760 ($425,000 price minus $386,240 in total costs). This profit would then be reduced by any renovation costs paid by Kristen.

Loan Example 2

Bruce is a an investor in Honolulu, HI. He locates an older townhouse for a rehab project and takes a fix and flip loan from Forerunner Funding, Inc with the following features:

$360,000 sales price
85% loan to value (LTV)
6 month term
9% interest rate
1% origination fee

Assuming a $504,000 sales price at the end of the 6 month term, the final numbers for this deal would look like the following:

$504,000 sales price
- $306,000 note principle (85% LTV)
- $54,000 down payment (15% on 85% LTV)
- $3,060 origination fee (1% of the $306,000 principle)
- $13,770 total interest paid (6 months x 9% interest)
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= $127,170 total profit (does not include taxes or rehab costs)

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