Gala Resources

About Gala Resources

Gala Resources is private lender headquartered in New York, NY. They offer funding in 8 states throughout the country. They offer private refinancing, rental property loans, fix-and-flip hard money loans, bridge loans, hard money loans for commercial properties, and builder loans. They issue loan amounts ranging from $100,000 to $10,000,000 with a maximum LTV of 65%, rates starting at 13% , and terms up to 1 year. They offer loans on all the following types of properties: single family homes, multi-family, mixed use buildings, retail units, offices, and warehouses.

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, Mixed Use, Retail, Office, Warehouse

Areas Served: NY, NJ, CT, MA, PA, MD, DC, VA

Lending Guidelines for Gala Resources

Below are the general loan guidelines published on the Gala Resources 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 Gala Resources.

Loan Example 1

Margie closes on a $270,000 renovation project in Brooklyn, NY, using a hard money loan from Gala Resources. The loan-to-value (LTV) on the loan is 50%. This means that Margie will have to bring 50% of the purchase price to the closing and the principle will be $135,000 on the loan. The deal also includes the following features: 1) a 12 month length, 2) a 14% interest only note, and 3) a three point origination fee.

By the terms of the note, Margie will need to contribute a $4,050 origination fee plus 50% of the purchase price, or $135,000, since there is a 50% LTV. After the deal is executed and Margie takes over the property, she will have to begin making payments each month of $1,575 to the lender ($135,000 principle x 14% / 12 months). If she sells the rehabed project for $378,000 at the end of the 12 month term, her gross profit (not including renovation costs) would be $85,050. This is computed by taking the sales price ($378,000) and subtracting the principle ($135,000), the origination fee ($4,050), the cash she contributed to closing ($135,000), and the total interest expenses ($18,900).

Loan Example 2

Gala Resources makes a private money loan to Charles for a remodeling project in Brooklyn, NY. The loan includes the following:

a) A $260,000 purchase price, b) a 60% loan to value (LTV), c) a 6 month term, d) a 9% interest rate, and e) a 4% origination fee.

If Charles succeeds in his goal of a $377,000 sales price, the numbers of the deal would be as follows:

$377,000 sales price
- $156,000 loan principle (60% LTV)
- $104,000 cash paid at closing (40% on 60% LTV)
- $6,240 origination fee (4% of the $156,000 principle)
- $7,020 interest payments (6 months x 9% interest)
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= $103,740 gross profit (doesn't include taxes or rehab costs)

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