Hard Money Brooklyn

About Hard Money Brooklyn

Hard Money Brooklyn is a private money lender headquartered in Brooklyn, NY offering loans throughout New York City. They provide investment property loans, fix-and-flip loans, private commercial loans, and short term loans. Their lending guidelines are versatile, including loan amounts ranging from $100,000 to $10,000,000. They do not require a minimum credit rating to obtain a loan. They offer loans on the following property types: single family residences, multi family residences, apartments, office units, retail storefronts, mixed use buildings, warehouses, and industrial buildings.

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

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

Areas Served: New York City, Suffolk County, Nassau County, NY

Lending Guidelines for Hard Money Brooklyn

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

Loan Example 1

Hard Money Brooklyn makes a private money loan to Salvador for a renovation project in Cos Cob, CT, on a property that costs $180,000. The terms of the deal include a 75% loan-to-value (LTV), so he must contribute 25% of the price as cash at closing, making the principle loan amount $135,000. The deal also includes these features: 1) a 6 month term, 2) a 8% interest only note, and 3) a three percent origination charge.

In addition to paying the $4,050 origination fee, Salvador will also have to fund $45,000 of the purchase with his own money, or 25% of the purchase price. The lender will collect $900 in monthly interest from the Salvador. This is calculated by taking the total note amount of $135,000, multiplying that by the 8% rate of interest, and then dividing that number by 12. At the end of the loan, he sells the rehabed property for $252,000. After deducting the $5,400 in interest payments ($900 times 6 months), the $4,050 origination fee, the $135,000 principle amount on the loan, and the $45,000 he brought to the closing, he will make a total profit of $62,550 ($252,000 price minus $189,450 in total costs). This amount would be reduced by any rehab costs paid by the borrow.

Loan Example 2

Kelly takes out a private money loan from Hard Money Brooklyn so he can remodel a townhouse to re-sell in Cos Cob, CT. The loan has the following parameters:

$250,000 sales price
70% loan to value (LTV)
18 month term
8% rate of interest
5% origination fee

If Kelly accomplishes his goal of a $325,000 sales price, the final numbers of the deal will be as follows:

$325,000 sales price
- $175,000 principle (70% LTV)
- $75,000 cash paid at closing (30% on 70% LTV)
- $8,750 origination points (5% of the $175,000 principle)
- $21,000 total interest paid (18 months x 8% interest)
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= $45,250 gross profit (does not include taxes or rehab costs)

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