GMA Hard Money

About GMA Hard Money

Based in Pittsburgh, PA, GMA Hard Money is a private lender offering funding in Chicago, Newark, and Pittsburgh. They offer fix and flip loans, cash out hard money loans, buy and hold loans, and private commercial loans. They provide rates ranging between 9.99% and 12%, loan amounts ranging from $100,000 to $5,000,000 with a maximum LTV of 80%, and terms up to 1 year. They will make loans on various types of properties, including single family residences, multi family residences, apartments, office buildings, retail storefronts, mixed use, and industrial facilities.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, Refinance / Cash Out Loans

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

Areas Served: Chicago, Newark, Pittsburgh, CA, TX, FL

Lending Guidelines for GMA Hard Money

Below are the general loan guidelines published on the GMA Hard Money 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 GMA Hard Money.

Loan Example 1

Goldie closes on a $170,000 rehab project in Chicago, IL, using a hard money loan from GMA Hard Money. The terms of the deal include a 85% loan to value (LTV), so she must contribute 15% of the price as cash to closing, which makes the principle note amount $144,500. The rate on the loan is 12% for a length of 6 months and the company requires a three point origination fee at the closing. The interest is to be paid on a monthly basis and the principle will be repaid after the sale of the property.

On top of the $4,335 origination fee, Goldie will also have to fund $25,500 of the purchase with her own money, or 15% of the sales price. GMA Hard Money will collect $1,445 in monthly interest from the borrower. This is calculated by taking the total loan amount of $144,500, multiplying that by the 12% interest rate, and then dividing that number by 12. At the expiration of the note, she sells the rehabed property for $204,000. After deducting the $8,670 in interest payments ($1,445 multiplied times 6 months), the $4,335 origination fee, the $144,500 principle on the note, and the $25,500 she contributed to closing, she will make a total profit of $20,995 ($204,000 sales price minus $183,005 in costs). This amount would then be reduced by any rehab costs paid by the borrow.

Loan Example 2

Adrian locates a duplex in Chicago, IL to remodel and re-sell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from GMA Hard Money with the following parameters:

$250,000 purchase price
65% loan-to-value (LTV)
12 month term
8% rate of interest
1% origination fee

Based on a $375,000 sales price after the 12 month term, the final numbers for the deal would look like the following:

$375,000 sales price
- $162,500 loan principle (65% LTV)
- $87,500 cash paid at closing (35% on 65% LTV)
- $1,625 origination fee (1% of the $162,500 principle)
- $13,000 interest payments (12 months x 8% interest)
-----------------------
= $110,375 total profit (does not include taxes or renovation costs)

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