Herzer Financial Services

About Herzer Financial Services

Headquartered in Redwood City, CA, Herzer Financial Services is an asset-based lender offering loans throughout Sacramento. They offer loans for a variety of scenarios, including short term loans, construction loans, loans for investments properties, hard money loans for commercial properties, cash out hard money loans, and fix-and-flip hard money loans. Their lending parameters are versatile, including terms up to 84 months, loan amounts ranging from $75,000 to $1,500,000 with a maximum LTV of 65%, and rates ranging between 8.5% and 11%. They make loans on the following property types: single family residences, multi-family, apartment buildings, offices, retail storefronts, storage facilities, and mixed use.

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

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

Areas Served: Sacramento, San Francisco County, Marin County, Alameda County, San Mateo County, Sonoma County, Napa County, Santa Clara County, Contra Costa County, Solano County

Licenses: Real Estate Broker, California Dept. of Real Estate License #00417082, California Finance Lender's License #6054500, Nationwide Mortgage Licensing System #314253

Lending Guidelines for Herzer Financial Services

Below are the general loan guidelines published on the Herzer Financial Services 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 Herzer Financial Services.

Loan Example 1

Salvador is a real estate investor in Sacramento, CA. He discovers an older property and decides to remodel it and sell it for a profit. The property costs $190,000 but he doesn't have the full amount so he takes out a hard money loan with Herzer Financial Services. The borrower will be required to fund 50% of the sales price in cash to the closing based on a 50% loan-to-value stipulated by the lender. This makes the principle note from Herzer Financial Services $95,000. The note is interest-only, with monthly payments, and is for 18 months at 9% interest with 5 origination points paid when the deal closes.

On top of the $4,750 origination fee, Salvador will also fund $95,000 of the purchase with his own funds, or 50% of the sales price. The monthly interest-only payments will then total $713 to the lender. If Salvador sells the house for $256,500 after 18 months, he would realize a gross profit of $48,925 after subtracting the original principle of $95,000, the money paid at closing of $95,000, the origination fee of $4,750, and the total interest payments of $12,825. This gross profit doesn't account for building costs.

Loan Example 2

Marvin takes out a fix and flip loan from Herzer Financial Services in order to rehab a house to re-sell in Sacramento, CA. The loan has the following parameters:

$370,000 sales price
70% loan to value (LTV)
18 month term
14% rate of interest
5% origination fee

Based on a $555,000 sales price at the end of the 18 month term, the outcome for the deal would look like the following:

$555,000 sales price
- $259,000 note principle (70% LTV)
- $111,000 cash paid at closing (30% on 70% LTV)
- $12,950 origination points (5% of the $259,000 principle)
- $54,390 total interest paid (18 months x 14% interest)
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= $117,660 gross profit (does not include taxes or renovation costs)

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