HBS Finance

About HBS Finance

HBS Finance is a Torrance, CA based private money lender. They offer funding in California. They provide lending solutions for a variety of scenarios, including fix-and-flip loans, commercial loans, short term bridge loans, and ground up construction loans. Their lending guidelines are versatile, including loan amounts up to $15,000,000 with a maximum LTV of 70%, rates starting at 8.99% , and terms between 1 year and 5 years. They do not require a minimum credit rating to obtain a loan. They offer loans on various property types, including single family residences, multi family residences, apartments, office buildings, retail units, industrial facilities, and storage facilities.

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

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Industrial, Storage

Areas Served: CA

Licenses: DRE 01860110, NMLS 238130

Lending Guidelines for HBS Finance

Below are the general loan guidelines published on the HBS 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 HBS Finance.

Loan Example 1

Tony finds a townhome in Los Angeles, CA to renovate and sell. Since he does not have enough cash available to buy the $390,000 house outright, he decides to take out a private money loan from HBS Finance. The loan to value (LTV) on the note is 55%. This means that Tony will have to bring 45% of the purchase price to the closing and the principle will be $214,500 on the note. The loan also has these features: 1) a 12 month term, 2) a 8% interest only note, and 3) a one point origination fee.

In addition to paying the $2,145 origination fee, Tony will also have to fund $175,500 of the purchase with his own cash, or 45% of the purchase price. After the loan closes, he will need to pay HBS Finance $1,430 in monthly interest fees, or 8% multiplied times $214,500 divided by 12 months in a year. Tony's plan is to complete the remodel by the end of the 12 months and sell it for $468,000. If he succeeds he will earn a gross profit of $58,695 ($468,000 sales price - $214,500 principle - $175,500 cash paid at closing - $2,145 origination fee - $17,160 in interest.

Loan Example 2

Dustin is a an investor in Los Angeles, CA. He purchases an older townhouse for a remodeling project and obtains a hard money loan from HBS Finance with the following paramters:

a) A $180,000 purchase price, b) a 75% loan to value (LTV), c) a 6 month term, d) a 12% interest rate, and e) a 2% origination fee.

Assuming a $225,000 sales price after the 6 month term, the outcome for the deal would look like the following:

$225,000 sales price
- $135,000 principle on note (75% LTV)
- $45,000 cash paid at closing (25% on 75% LTV)
- $2,700 origination fee (2% of the $135,000 principle)
- $8,100 total interest paid (6 months x 12% interest)
-----------------------
= $34,200 total profit (doesn't include taxes or renovation costs)

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