Harper Financial

About Harper Financial

Harper Financial is private lender headquartered in Brockton, MA. They provide funding in Massachusetts. They offer private refinancing, bridge loans, commercial loans, and fix and flip loans. They issue loans with a maximum LTV of 75% and terms up to 1 year. They offer loans on most types of properties, including single family residences, multi family residences, apartment buildings, office units, retail units, hotels and motels, storage buildings, senior living facilities, mixed use, warehouse buildings, industrial buildings, and medical buildings.

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

Areas Served: MA

Lending Guidelines for Harper Financial

Below are the general loan guidelines published on the Harper Financial 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 Harper Financial.

Loan Example 1

Annette is an investor in Boston, MA. She finds an older property and decides to rehab it and flip it for a profit. The property costs $240,000 but she does not have the full amount so she takes out a fix and flip loan with Harper Financial. The terms of the loan include a 70% loan-to-value (LTV), so she must contribute 30% of the price as cash at closing, making the principle loan amount $168,000. The loan is interest-only, paid monthly, and is for 18 months at 11% interest with 5 origination points to be paid at closing.

In accordance with the parameters of the loan, Annette will be required to pay a $8,400 origination fee plus 30% of the sales price, or $72,000, since there is a 70% LTV. After the deal closes, she will need to pay the lender $1,540 in monthly interest payments, or 11% times $168,000 divided by 12 months in the year. Assuming she sells the rehabed house for $336,000 at the end of the 18 month term, her gross profit (not accounting for rehab costs) would be $59,880. This is calculated by taking the sales price ($336,000) and subtracting the original principle ($168,000), the origination cost ($8,400), the funds she brought to closing ($72,000), and the total interest payments ($27,720).

Loan Example 2

Jamie is a real estate investor in Boston, MA. She locates an older townhouse for a remodeling project and takes out a private money loan from Harper Financial with the following features:

$250,000 sales price
50% loan to value (LTV)
12 month term
13% interest rate
5% origination fee

If Jamie succeeds in her goal of a $350,000 sales price, the numbers of the project will be the following:

$350,000 sales price
- $125,000 note principle (50% LTV)
- $125,000 cash paid at closing (50% on 50% LTV)
- $6,250 origination points (5% of the $125,000 principle)
- $16,250 total interest paid (12 months x 13% interest)
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= $77,500 total profit (does not include taxes or renovation costs)

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