Insource Funding

About Insource Funding

Headquartered in West Palm Beach, FL, Insource Funding is a private lender offering loans throughout South Florida. They provide lending solutions for many different situations, including private refinancing, commercial hard money loans, fix-and-flip hard money loans, and short term bridge loans. They issue loans with a maximum LTV of 65%, terms between 1 year and 2 years, and rates ranging between 8.5% and 10.5%. They will make loans on most property types, including single family residences, multi-family, apartments, office units, retail spaces, hotels and motels, storage buildings, senior housing facilities, mixed use buildings, warehouses, 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: South Florida

Licenses: NMLS #378232

Lending Guidelines for Insource Funding

Below are the general loan guidelines published on the Insource Funding 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 Insource Funding.

Loan Example 1

Penelope takes a private money loan from Insource Funding in order to rehab a duplex to flip in Belle Glade, FL. The price of the house is $290,000. The loan-to-value (LTV) on the deal is 50%. This means Penelope will bring 50% of the purchase price to closing and the principle amount will be $145,000 on the loan. The loan also has the following features: 1) a 18 month term, 2) a 9% interest-only note, and 3) a three point origination charge.

Penelope will have to contribute $145,000 to closing (50% on the 50% LTV), plus she will need to pay the $4,350 origination fee. Insource Funding will collect $1,088 in monthly interest from the borrower. This is calculated by taking the total loan value of $145,000, multiplying by the 9% interest rate, and then dividing that amount by 12. If Penelope accomplishes her goal of a $362,500 sales price when the loan expires, she would make a gross profit of $48,575 after re-paying the principle on the note and deducting the cash she brought to closing, the origination points, and the monthly interest payments.

Loan Example 2

Kevin finds a house in Belle Glade, FL to renovate and re-sell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from Insource Funding with the following parameters:

a) A $150,000 purchase price, b) a 70% loan to value (LTV), c) a 6 month term, d) a 11% interest rate, and e) a 5% origination fee.

After the renovation project is completed, if Kevin sells the project for $187,500, the outcome would be the following:

$187,500 sales price
- $105,000 principle (70% LTV)
- $45,000 cash paid at closing (30% on 70% LTV)
- $5,250 origination fee (5% of the $105,000 principle amount)
- $5,775 interest payments (6 months x 11% interest)
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= $26,475 gross profit (doesn't include taxes or renovation costs)