Gencor Mortgage Inc

About Gencor Mortgage Inc

Gencor Mortgage Inc is hard money lender headquartered in Tucson, AZ. They provide loans throughout Tucson. They provide lending solutions for many different needs and situations, including short term fix and flip loans and loans for rental properties. The focus of their lending is for single family residences and multi-family units.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: Tucson

Lending Guidelines for Gencor Mortgage Inc

Below are the general loan guidelines published on the Gencor Mortgage 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 Gencor Mortgage Inc.

Loan Example 1

Chris takes a hard money loan from Gencor Mortgage Inc in order to remodel a duplex to flip in Tucson, AZ. The sales price of the property is $260,000. The loan to value (LTV) on the note is 80%. This means Chris will need to bring 20% of the purchase price to the closing and the principle amount will be $208,000 on the deal. The rate on the note is 9% for a term of 18 months and the company requires a three point origination fee at the close. The interest payments are to be paid monthly and the principle amount will be returned after the sale of the property.

Accordingly, Chris will have to make a $52,000 down payment plus pay a $6,240 origination fee. The lender will collect $1,560 in monthly interest from the borrower. This is calculated by taking the total note amount of $208,000, multiplying by the 9% interest rate, and then dividing that amount by 12. Assuming he sells the remodeled project for $364,000 at the end of the 18 month term, his gross profit (not accounting for rehab costs) would be $69,680. This is calculated by taking the purchase price ($364,000) and subtracting the principle ($208,000), the origination fee ($6,240), the money he contributed to closing ($52,000), and the total interest expenses ($28,080).

Loan Example 2

Gencor Mortgage Inc makes a hard money loan to Jackie for a renovation project in Tucson, AZ. The deal dictates the following:

$380,000 purchase price
55% loan to value (LTV)
6 month term
13% interest rate
4% origination fee

Once the rehab project is finished, if Jackie sells the property for $570,000, the numbers would be the following:

$570,000 sales price
- $209,000 loan principle (55% LTV)
- $171,000 down payment (45% on 55% LTV)
- $8,360 origination points (4% of the $209,000 principle)
- $13,585 total interest paid (6 months x 13% interest)
-----------------------
= $168,055 gross profit (doesn't include taxes or renovation costs)

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