Manhattan Bridge Capital

About Manhattan Bridge Capital

Manhattan Bridge Capital is a Great Neck, NY based private money lender who offers funding throughout New York City. They provide long term rental property loans, ground-up construction loans, fix and flip loans, and hard money bridge loans. Their lending guidelines are versatile, including terms up to 1 year and loan amounts ranging from $100,000 to $2,000,000 with a maximum LTV of 65%. They primarily make funding on single family residences and multi family residences.

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

Property Types Covered: Single Family, Multi Family

Areas Served: New York City

Lending Guidelines for Manhattan Bridge Capital

Below are the general loan guidelines published on the Manhattan Bridge Capital 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 Manhattan Bridge Capital.

Loan Example 1

Candace is a real estate investor in Cos Cob, CT. She locates an older property for sale and wants to remodel it and flip it for a profit. The property has a cost of $210,000 but she doesn't have the full amount so she takes out a fix-and-flip loan with Manhattan Bridge Capital. Since the lender agrees to a 55% loan-to-value, Candace will have to put 45% down and the principle amount of the note will be $115,500. The parameters of the deal dictate a 9% note for 18 months. They also require a 3 point origination fee, that will also need to be paid at closing.

In accordance with the parameters of the deal, Candace will be required to contribute a $3,465 origination fee plus 45% of the sales price, or $94,500, based on the 55% LTV. The lender will collect $866 in monthly interest from the borrower. This is computed by taking the total note amount of $115,500, multiplying by the 9% interest rate, and then dividing that amount by 12. Assuming Candace sells the renovated house for $315,000 at the end of the 18 month term, her total profit (not including remodeling costs) would be $85,943. This is computed by taking the purchase price ($315,000) and subtracting the original note amount ($115,500), the origination fee ($3,465), the money she brought to closing ($94,500), and the total interest expenses ($15,593).

Loan Example 2

Maude locates a property in Cos Cob, CT to renovate and sell. Since she does not have enough cash to buy the property outright, she takes a fix and flip loan from Manhattan Bridge Capital with the following parameters:

a) A $270,000 sales price, b) a 70% loan to value (LTV), c) a 18 month term, d) a 11% interest rate, and e) a 5% origination fee.

Maude intends to sell the project at the end of the term for $405,000. If she achieves this goal, the outcome would be as follows:

$405,000 sales price
- $189,000 note principle (70% LTV)
- $81,000 down payment (30% on 70% LTV)
- $9,450 origination fee (5% of the $189,000 principle)
- $31,185 interest payments (18 months x 11% interest)
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= $94,365 total profit (does not include taxes or renovation costs)

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