GCap Financing

About GCap Financing

GCap Financing is a Gardendale, FL based private money lender providing loans throughout Alabama and Florida. Their lending focus is primarily on private commercial loans. They issue loan amounts ranging from $50,000 to $9,000,000 with a maximum LTV of 90% and terms up to 300 months. They offer loans on numerous types of properties, including multi family, apartments, offices, retail storefronts, storage facilities, and mixed use buildings.

Loan Types Offered: Commercial Hard Money Loans

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

Areas Served: AL, FL

Lending Guidelines for GCap Financing

Below are the general loan guidelines published on the GCap Financing 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 GCap Financing.

Loan Example 1

So she can purchase a new building for her growing business, Laurie looks to GCap Financing to fund her acquisition with a commercial hard money loan because she cannot obtain a standard loan from a bank. The building costs $360,000. Laurie will have to put 45% down, or $162,000, because the lender will only fund 55% of the purchase (the loan to value or "LTV"). Accordingly, the principle amount on the loan is $198,000. The loan also includes a 18 month term, a 12% interest rate, interest-only payments paid each month with a balloon payment when the note expires (with no pre-payment penalty), and a 4 percent origination charge. By the rules of this loan, Laurie will have to pay an origination charge of $7,920 at closing (4% x $198,000 principle value) and will then begin making payments of $1,980 per month ($198,000 principle value x 12% interest / 12 months per year). she will also make a balloon payment of the $198,000 principle value upon expiration of the note, or sooner if she chooses to pay off early.

Loan Example 2

GCap Financing makes a loan to Dustin for a rehab project in Miami, FL. The deal dictates the following:

$340,000 sales price
70% loan-to-value (LTV)
6 month term
12% interest rate
1% origination fee

Dustin intends to list the property when the note expires for $442,000. If he succeeds, the outcome will be as follows:

$442,000 sales price
- $238,000 principle on note (70% LTV)
- $102,000 cash paid at closing (30% on 70% LTV)
- $2,380 origination points (1% of the $238,000 principle)
- $14,280 total interest paid (6 months x 12% interest)
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= $85,340 gross profit (doesn't include taxes or renovation costs)

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