K2 Commercial Finance

About K2 Commercial Finance

K2 Commercial Finance is a New Britain, PA based private lender providing funding across the country. Their lending focus is mainly on commercial loans. They provide loan amounts ranging from $75,000 to $5,000,000. They will make loans on various types of properties, including multi-family, apartments, office units, retail spaces, hotels and motels, storage buildings, senior housing communities, mixed use, warehouse spaces, industrial buildings, and medical buildings.

Loan Types Offered: Commercial Hard Money Loans

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

Areas Served: National

Lending Guidelines for K2 Commercial Finance

Below are the general loan guidelines published on the K2 Commercial 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 K2 Commercial Finance.

Loan Example 1

K2 Commercial Finance issues a private money loan to Richard for the purchase of a new office space after he is turned down for a standard loan by his bank because he has a low credit rating. The new property will cost $200,000. Based on a 85% loan-to-value (LTV) agreed to by the lender, the principle will be $170,000. The remaining $30,000 will be be paid by Richard. The lender also lays out the following terms to the deal: 1) a 12% rate of interest, 2) a 18 month term with interest only payments to be made each month, 3) an origination fee of 5 points paid by Richard at the close, and 4) no penalty for pre-payment. Richard can eliminate the note at any point in time if he pays off the $170,000 in principle, but he will be required to pay $1,700 /month interest payments ($170,000 principle value x 12% interest rate / 12 months per year) in the meantime, or up to the point the note expires. Because there is no pre-payment penalty, the only additional cost he will have is the $8,500 origination points which he will contribute at closing.

Loan Example 2

Shawn is a an investor in Henderson, NV. He purchases an older house for a renovation project and takes out a private money loan from K2 Commercial Finance with the following features:

$390,000 purchase price
50% loan-to-value (LTV)
6 month term
13% rate of interest
1% origination fee

Once the rehab project is finished, if Shawn sells the house for $546,000, the numbers would be as follows:

$546,000 sales price
- $195,000 principle on note (50% LTV)
- $195,000 down payment (50% on 50% LTV)
- $1,950 origination points (1% of the $195,000 principle)
- $12,675 total interest paid (6 months x 13% interest)
-----------------------
= $141,375 gross profit (does not include taxes or renovation costs)

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