M&M Real Estate Holdings

About M&M Real Estate Holdings

M&M Real Estate Holdings is private lender based in Pittsburgh, PA. They offer funding throughout Pittsburgh. Their lending focus is primarily on fix-and-flip loans. Their lending guidelines are versatile, including loan amounts ranging from $50,000 to $500,000. They primarily offer loans for single family residences and multi family.

Loan Types Offered: Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: Pittsburgh

Lending Guidelines for M&M Real Estate Holdings

Below are the general loan guidelines published on the M&M Real Estate Holdings 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 M&M Real Estate Holdings.

Loan Example 1

Jason is a house flipper in Pittsburgh, PA. He discovers an older property for sale and wants to rehab it and flip it for a profit. The house costs $380,000 but he does not have the full amount so he obtains a fix-and-flip loan with M&M Real Estate Holdings. The lender agrees to issue a loan with a 85% loan-to-value (LTV) so they will loan $323,000 on the house. The rate on the note is 13% for a length of 18 months and the company requires a three point origination fee at closing. The interest is to be paid on a monthly basis and the principle amount will be returned after the property sells.

The borrower must bring a total of $32,400 up front to cover the $57,000 down payment in addition to the $9,690 origination fee. After the loan closes, he will have to pay M&M Real Estate Holdings $3,499 in monthly interest fees, or 13% multiplied times $323,000 divided by 12 months in the year. If Jason sells the house for $494,000 after 18 months, he would make a total profit of $41,325 after deducting the principle of $323,000, the funds paid at closing of $57,000, the origination points of $9,690, and the aggregate interest payments of $62,985. This gross profit does not account for building costs.

Loan Example 2

M&M Real Estate Holdings issues a loan to Marcia for a remodeling project in Pittsburgh, PA. The deal dictates the following:

$290,000 sales price
65% loan to value (LTV)
18 month term
11% interest rate
5% origination fee

Marcia intends to list the project at the end of the term for $362,500. If she accomplishes her goal, the outcome will be as follows:

$362,500 sales price
- $188,500 principle on note (65% LTV)
- $101,500 cash paid at closing (35% on 65% LTV)
- $9,425 origination fee (5% of the $188,500 principle amount)
- $31,103 total interest paid (18 months x 11% interest)
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= $31,973 gross profit (does not include taxes or rehab costs)

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