Investment Property Financing

About Investment Property Financing

Investment Property Financing is a Memphis, TN based hard money lender providing funding throughout Tennessee. They offer lending solutions for a variety of situations, including hard money bridge loans, short term fix and flip loans, buy and hold loans, and hard money loans for commercial properties. Their loan parameters are versatile, including terms between 6 months and 9 months, rates ranging between 9% and 13%, and loan amounts starting from $30,000 with a maximum LTV of 75%. They provide loans on most types of properties, including single family units, multi family, apartment buildings, office buildings, retail storefronts, mixed use, and industrial facilities.

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, Industrial

Areas Served: TN

Lending Guidelines for Investment Property Financing

Below are the general loan guidelines published on the Investment Property Financing 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 Investment Property Financing.

Loan Example 1

Investment Property Financing makes a private money loan to Ann for a renovation project in Memphis, TN, on a house that costs $220,000. The borrower will have to bring 30% of the sales price in cash to closing based on a 70% loan-to-value stipulated by the lender. This makes the loan principle from Investment Property Financing $154,000. The note is interest only, with monthly payments, and is for 18 months at 14% interest with 2 origination points paid when the deal closes.

In accordance with the terms of the loan, Ann will need to pay a $3,080 origination fee in addition to 30% of the sales price, or $66,000, since there is a 70% LTV. she will then pay $1,797 monthly to Investment Property Financing. If Ann accomplishes her goal of a $286,000 sales price when the loan expires, she would pocket a gross profit of $30,580 after re-paying the principle and deducting the cash she brought to closing, the origination points, and the total monthly interest payments.

Loan Example 2

Lacey finds a property in Memphis, TN to renovate and resell. Since she does not have enough cash to buy the property outright, she takes a fix and flip loan from Investment Property Financing with the following parameters:

$260,000 purchase price
60% loan-to-value (LTV)
6 month term
9% interest rate
5% origination fee

Once the renovation project is finished, if Lacey sells the property for $351,000, the numbers would be the following:

$351,000 sales price
- $156,000 principle on note (60% LTV)
- $104,000 down payment (40% on 60% LTV)
- $7,800 origination fee (5% of the $156,000 principle amount)
- $7,020 total interest paid (6 months x 9% interest)
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= $76,180 gross profit (doesn't include taxes or rehab costs)

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