Great Jones Capital

About Great Jones Capital

Great Jones Capital is hard money lender headquartered in Washington DC. They provide loans throughout Washington DC, Maryland, and Virginia. They offer loans for a variety of scenarios, including fix and flip hard money loans, private commercial loans, loans for rental properties, ground up construction loans, and short term loans. They offer loan amounts ranging from $250,000 to $5,000,000 with a maximum LTV of 65% and terms between 6 months and 24 months. Their loan parameters do not include a minimum credit rating. They will make loans on most types of properties, including single family, multi family residences, apartment buildings, office buildings, retail spaces, hotels, mixed use, and undeveloped land.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Bridge Loans

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

Areas Served: DC, MD, VA

Lending Guidelines for Great Jones Capital

Below are the general loan guidelines published on the Great Jones Capital 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 Great Jones Capital.

Loan Example 1

Monica is an investor in Baltimore, MD. She finds a run-down property for sale and wants to renovate it and sell it for a profit. The house costs $310,000 but she does not have the full amount so she takes out a fix and flip loan with Great Jones Capital. The borrower will need to contribute 35% of the sales price in cash to closing based on a 65% loan-to-value stipulated by the lending company. This makes the principle amount from Great Jones Capital $201,500. The loan also includes these features: 1) a 6 month term, 2) a 14% interest only note, and 3) a three point origination charge.

On top of the $6,045 origination fee, Monica will also have to fund $108,500 of the purchase with her own money, or 35% of the sales price. After the loan closes, she will pay the lender $2,351 in monthly interest payments, or 14% times $201,500 divided by 12 months in the year. At the end of the loan, she sells the rehabed house for $372,000. After subtracting the $14,105 in interest expenses ($2,351 times 6 months), the $6,045 origination fee, the $201,500 principle on the loan, and the $108,500 she contributed to closing, she will earn a gross profit of $41,850 ($372,000 price minus $330,150 in total costs). This amount would be reduced by any renovation costs paid by the borrow.

Loan Example 2

Morris is a an investor in Baltimore, MD. He purchases a run-down house for a rehab project and takes a private money loan from Great Jones Capital with the following terms:

a) A $260,000 sales price, b) a 85% loan to value (LTV), c) a 12 month term, d) a 8% interest rate, and e) a 5% origination fee.

If Morris accomplishes his goal of a $312,000 sales price, the outcome of the deal will be as follows:

$312,000 sales price
- $221,000 note principle (85% LTV)
- $39,000 cash paid at closing (15% on 85% LTV)
- $11,050 origination fee (5% of the $221,000 principle)
- $17,680 interest payments (12 months x 8% interest)
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= $23,270 total profit (doesn't include taxes or renovation costs)