George Smith Partners

About George Smith Partners

George Smith Partners is a Los Angeles, CA based hard money lender. They provide loans all throughout the US. They provide loans for a variety of situations and needs, including hard money loans for commercial properties, short term bridge loans, and builder loans. They provide loans on the following types of properties: multi family residences, apartment buildings, office units, retail units, and mixed use spaces.

Loan Types Offered: Commercial Hard Money Loans, New Construction Loans, Bridge Loans

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

Areas Served: National

Lending Guidelines for George Smith Partners

Below are the general loan guidelines published on the George Smith Partners 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 George Smith Partners.

Loan Example 1

So she can buy a new retail space for her growing business, Cynthia turns to George Smith Partners to fund her acquisition with a commercial private money loan since she is unable to obtain a conventional mortgage loan from a bank. The new building costs $180,000. Cynthia will need to put 20% down, or $36,000, since the lender will loan only 80% of the purchase (the loan to value or "LTV"). This means the principle on the loan will be $144,000. The deal also includes a 18 month term, a 10% rate of interest, interest-only payments paid monthly with a balloon payment at the end of the note (with no pre-payment penalty), and a 3 percent origination charge. Cynthia will be required to pay the origination fee of $4,320 and she will then begin to make the interest payments in the amount of $1,200 ($144,000 principle x 10% interest rate / 12 months in a year). She can re-pay the note whenever she wants to since there is not a pre-payment penalty but she will be responsible for paying off the full principle when she closes the loan.

Loan Example 2

Aaron locates a duplex in Stockton, CA to remodel and sell. Since he does not have enough cash to buy the property outright, he takes a private money bridge loan from George Smith Partners with the following parameters:

a) A $340,000 purchase price, b) a 80% loan-to-value (LTV), c) a 12 month term, d) a 12% interest rate, and e) a 2% origination fee.

Assuming a $510,000 sales price after the 12 month term, the numbers for this deal would look like the following:

$510,000 sales price
- $272,000 loan principle (80% LTV)
- $68,000 cash paid at closing (20% on 80% LTV)
- $5,440 origination points (2% of the $272,000 principle amount)
- $32,640 total interest paid (12 months x 12% interest)
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= $131,920 total profit (does not include taxes or rehab costs)

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