Granite Funding

About Granite Funding

Granite Funding is a Rancho Cordova, CA based private money lender. They offer funding in California. They provide fix and flip loans, hard money loans for commercial properties, bridge loans, refinancing, and new construction loans. They offer loans with a maximum LTV of 65%. They make loans on various property types, including single family residences, multi-family, apartments, offices, retail spaces, hotels, storage facilities, senior living communities, mixed use spaces, warehouses, industrial facilities, medical offices, and raw land.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Refinance / Cash Out Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical, Land

Areas Served: CA

Licenses: Real Estate Broker, California Bureau of Real Estate: #01935831

Lending Guidelines for Granite Funding

Below are the general loan guidelines published on the Granite Funding 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 Granite Funding.

Loan Example 1

Kate is an investor in Los Angeles, CA. She discovers an older property and decides to renovate it and sell it for a profit. The property has a cost of $180,000 but she does not have the full amount so she takes out a fix and flip loan with Granite Funding. The loan-to-value (LTV) on the deal is 85%. This means that Kate will need to bring 15% of the sales price to the closing and the principle amount will be $153,000 on the note. The interest rate on the note is 12% for a length of 12 months and the lender requires a four point origination fee at the closing. The interest payments are to be paid on a monthly basis and the principle amount will be repaid after the property sells.

Kate will need to contribute $27,000 at closing (15% on the 85% LTV), plus she will need to pay the $6,120 origination fee. The lender will collect $1,530 in monthly interest payments from the Kate. This is computed by taking the full note amount of $153,000, multiplying that by the 12% rate of interest, and then dividing that number by 12. If Kate accomplishes her goal of a $234,000 total sales price when the loan term expires, she would pocket a gross profit of $29,520 after re-paying the principle and deducting the cash she paid at closing, the origination fee, and the monthly interest payments.

Loan Example 2

Latonya is a an investor in Los Angeles, CA. She purchases an older townhouse for a rehab project and takes a fix and flip loan from Granite Funding with the following features:

$220,000 purchase price
65% loan to value (LTV)
18 month term
13% interest rate
2% origination fee

After the rehab project is complete, if Latonya sells the project for $264,000, the outcome would be the following:

$264,000 sales price
- $143,000 principle on note (65% LTV)
- $77,000 cash paid at closing (35% on 65% LTV)
- $2,860 origination fee (2% of the $143,000 principle amount)
- $27,885 interest payments (18 months x 13% interest)
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= $13,255 total profit (doesn't include taxes or rehab costs)