Jems Financial

About Jems Financial

Jems Financial is a Marlborough, MA based private lender. They provide loans throughout Massachusetts. They offer lending solutions for a variety of scenarios, including hard money loans for commercial properties, ground up construction loans, loans for rental properties, fix-and-flip hard money loans, and bridge loans. Their lending parameters are flexible, including loan amounts ranging from $100,000 to $5,000,000 with a maximum LTV of 75%, rates ranging between 10% and 13%, and terms between 6 months and 2 years. They make loans on most types of properties, including single family units, multi-family units, apartment buildings, offices, retail storefronts, hotels/motels, storage facilities, senior housing facilities, mixed use, warehouses, industrial facilities, medical facilities, and raw land.

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

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical, Land

Areas Served: MA

Lending Guidelines for Jems Financial

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

Loan Example 1

Derrick closes on a $270,000 rehab project in Boston, MA, using a fix-and-flip loan from Jems Financial. The terms of the loan include a 70% loan to value (LTV), so he must bring 30% of the price as cash to closing, which makes the principle note amount $189,000. The loan is interest only, with monthly payments, and is for 18 months at 14% interest with 5 origination points to be paid at the closing.

Accordingly, Derrick will be required to contribute a $81,000 down payment in addition to paying a $9,450 origination fee. Jems Financial will collect $2,205 in monthly interest from the borrower. This is calculated by taking the total loan value of $189,000, multiplying that by the 14% rate of interest, and then dividing that amount by 12. If Derrick sells the house for $391,500 after 18 months, he would make a total profit of $72,360 after deducting the principle amount of $189,000, the funds paid at closing of $81,000, the origination fee of $9,450, and the aggregate interest payments of $39,690. This profit doesn't account for remodeling costs.

Loan Example 2

Patricia is a real estate investor in Boston, MA. She finds an older house for a rehab project and takes a fix and flip loan from Jems Financial with the following paramters:

$360,000 purchase price
80% loan to value (LTV)
18 month term
12% interest rate
3% origination fee

If Patricia achieves her goal of a $504,000 sales price, the outcome of the project will be as follows:

$504,000 sales price
- $288,000 loan principle (80% LTV)
- $72,000 cash paid at closing (20% on 80% LTV)
- $8,640 origination fee (3% of the $288,000 principle)
- $51,840 interest payments (18 months x 12% interest)
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= $83,520 gross profit (does not include taxes or rehab costs)

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