Lead Funding

About Lead Funding

Lead Funding is a private money lender offering funding in Arizona, Colorado, Texas, and Washington. They offer lending solutions for many different scenarios, including private refinancing, fix-and-flip hard money loans, and hard money construction loans. They provide rates starting at 12%, terms between 1 year and 3 years, and loan amounts ranging from $75,000 to $6,000,000. They primarily make funding for single family residences and multi family.

Loan Types Offered: Fix and Flip Loans, New Construction Loans, Refinance / Cash Out Loans

Property Types Covered: Single Family, Multi Family

Areas Served: AZ, CO, TX, WA

Licenses: NMLS #1375924, AZ BK #0930466

Lending Guidelines for Lead Funding

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

Loan Example 1

Lead Funding makes a hard money loan to Clare for a renovation project in Houston, TX, on a house that costs $200,000. The borrower will be required to bring 35% of the purchase price in cash to closing based on a 65% loan-to-value set by the lending company. This makes the principle note from Lead Funding $130,000. The terms of the note also include a four point origination fee that is to be paid at closing and a 6 month, interest only note with a 10% rate of interest.

According to the terms of the note, Clare will have to contribute a $5,200 origination fee in addition to 35% of the purchase price, or $70,000, since there is a 65% LTV. Once the deal is closed and Clare takes the property, she will have to begin making monthly payments of $1,083 to Lead Funding ($130,000 principle x 10% / 12 months). At the expiration of the note, she sells the renovated house for $280,000. After deducting the $6,500 in interest expenses ($1,083 times 6 months), the $5,200 origination fee, the $130,000 principle amount on the note, and the $70,000 she brought to closing, she will earn a total profit of $68,300 ($280,000 price minus $211,700 in total costs). This profit would be reduced by any renovation costs paid by the borrow.

Loan Example 2

Willie takes a hard money loan from Lead Funding so he can renovate a property to re-sell in Houston, TX. The loan has the following parameters:

$320,000 sales price
85% loan to value (LTV)
18 month term
12% interest rate
5% origination fee

Assuming a $464,000 sales price after the 18 month term, the numbers for the deal would look like this:

$464,000 sales price
- $272,000 note principle (85% LTV)
- $48,000 down payment (15% on 85% LTV)
- $13,600 origination fee (5% of the $272,000 principle amount)
- $48,960 interest payments (18 months x 12% interest)
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= $81,440 gross profit (doesn't include taxes or renovation costs)

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