Grover Capital Finance

About Grover Capital Finance

Grover Capital Finance is a Coconut Grove, FL based hard money lender. They offer funding throughout Florida. They provide loans for rental properties and fix and flip hard money loans. They primarily provide loans on single family units and multi-family.

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

Property Types Covered: Single Family, Multi Family

Areas Served: FL

Licenses: NMLS #957886

Lending Guidelines for Grover Capital Finance

Below are the general loan guidelines published on the Grover Capital Finance 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 Grover Capital Finance.

Loan Example 1

Violet is a house flipper in Miami, FL. She finds an older property for sale and decides to remodel it and flip it for a profit. The property has a cost of $280,000 but she does not have the full amount so she takes out a private money loan with Grover Capital Finance. The borrower will be required to contribute 15% of the purchase price in cash to closing based on a 85% loan-to-value stipulated by the lending company. This makes the principle amount from Grover Capital Finance $238,000. The terms of the deal dictate a 9% note for 6 months. They also stipulate a 5 point origination fee, that will also have to be paid at closing.

By the parameters of the deal, Violet will be required to contribute a $11,900 origination fee plus 15% of the purchase price, or $42,000, based on the 85% LTV. she must then pay $1,785 per month to the lender. If Violet sells the house for $420,000 after 6 months, she would make a total profit of $117,390 after deducting the principle of $238,000, the cash contributed at the close of $42,000, the origination fee of $11,900, and the total interest payments of $10,710. This amount does not account for renovation costs.

Loan Example 2

Marshall is a real estate investor in Miami, FL. He locates a run-down townhouse for a remodeling project and obtains a hard money loan from Grover Capital Finance with the following terms:

$220,000 sales price
70% loan to value (LTV)
18 month term
13% rate of interest
4% origination fee

Assuming a $308,000 sales price after the 18 month term, the numbers for the project would look like this:

$308,000 sales price
- $154,000 principle (70% LTV)
- $66,000 cash paid at closing (30% on 70% LTV)
- $6,160 origination fee (4% of the $154,000 principle amount)
- $30,030 interest payments (18 months x 13% interest)
-----------------------
= $51,810 gross profit (does not include taxes or rehab costs)

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