Loan Oak Fund

About Loan Oak Fund

Lone Oak Fund is a direct lender offering bridge loans on California investment properties. Lone Oak Fund lends in senior position on all commercial properties types and non-owner occupied residential properties. Loan terms from 1 to 24 months, loan amounts from $1M - $50M, up to 60% LTV, and rates starting at 5.90% interest only. Non-recourse. No prepayment penalty, no yield maintenance. No 3rd party appraisal required. Fast closings.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, Refinance / Cash Out Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Mixed Use, Industrial, Land

Areas Served: CA

Licenses: California Finance Lender under Department of Business Oversight license number 603B623

Lending Guidelines for Loan Oak Fund

Below are the general loan guidelines published on the Loan Oak Fund 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 Loan Oak Fund.

Loan Example 1

Ladonna is a real estate investor in Los Angeles, CA. She discovers a run-down property for sale and decides to renovate it and sell it for a profit. The house has a cost of $150,000 but she does not have the full amount so she takes out a hard money loan with Loan Oak Fund. The terms of the note include a 75% loan to value (LTV), so she must contribute 25% of the price as cash at closing, making the principle loan amount $112,500. The rate on the loan is 10% for a term of 18 months and the lender requires a three point origination fee at the close. The interest is to be paid monthly and the principle amount will be paid back after the property sells.

In addition to paying the $3,375 origination fee, Ladonna will also need to fund $37,500 of the purchase with her own cash, or 25% of the purchase price. The lender will collect $938 in monthly interest payments from the Ladonna. This is calculated by taking the total loan amount of $112,500, multiplying by the 10% interest rate, and then dividing that number by 12. If Ladonna sells the property for $217,500 after 18 months, she would then realize a gross profit of $47,250 after deducting the principle amount of $112,500, the cash paid at closing of $37,500, the origination points of $3,375, and the total interest payments of $16,875. This amount does not account for renovation costs.

Loan Example 2

Loan Oak Fund issues a loan to Selma for a renovation project in Los Angeles, CA. The loan dictates the following:

a) A $290,000 purchase price, b) a 70% loan-to-value (LTV), c) a 18 month term, d) a 11% interest rate, and e) a 5% origination fee.

Selma intends to list the property when the note expires for $435,000. If she accomplishes her goal, the deal numbers will be the following:

$435,000 sales price
- $203,000 note principle (70% LTV)
- $87,000 down payment (30% on 70% LTV)
- $10,150 origination points (5% of the $203,000 principle amount)
- $33,495 interest payments (18 months x 11% interest)
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= $101,355 total profit (does not include taxes or rehab costs)