Medford Capital

About Medford Capital

Based in Skokie, IL, Medford Capital is an asset-based lender offering loans throughout Illinois, Wisconsin, Indiana, and Michigan. They provide commercial hard money loans, investment property loans, and fix-and-flip hard money loans. They provide loan amounts ranging from $100,000 to $1,000,000 with a maximum LTV of 80% and rates ranging between 10% and 12%. They provide loans on most property types, including single family units, multi family residences, apartments, office units, retail spaces, and mixed use.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans

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

Areas Served: IL, WI, IN, MI

Lending Guidelines for Medford Capital

Below are the general loan guidelines published on the Medford 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 Medford Capital.

Loan Example 1

Raul finds a townhouse in Chicago, IL to remodel and re-sell. Since he doesn't have enough cash on-hand to acquire the $320,000 house outright, he decides to take out a private money loan from Medford Capital. The loan-to-value (LTV) on the loan is 75%. This means Raul will have to bring 25% of the sales price to the closing and the principle amount will be $240,000 on the deal. The terms of the deal dictate a 11% note for 18 months. They also stipulate a 2 point origination fee, which will also be paid upon closing.

Raul will have to bring $80,000 at closing (25% on the 75% loan-to-value), plus he will need to pay the $4,800 origination fee. The lender will collect $2,200 in monthly interest from the Raul. This is computed by taking the full loan value of $240,000, multiplying that by the 11% rate of interest, and then dividing that number by 12. If Raul sells the remodeled project for $432,000 at the end of the 18 month term, his gross profit (not accounting for rehab costs) would be $67,600. This is computed by taking the purchase price ($432,000) and subtracting the original principle ($240,000), the origination cost ($4,800), the cash he brought to closing ($80,000), and the total interest payments ($39,600).

Loan Example 2

Carlos is a real estate investor in Chicago, IL. He finds a run-down property for a rehab project and takes a hard money loan from Medford Capital with the following paramters:

a) A $220,000 purchase price, b) a 85% loan-to-value (LTV), c) a 18 month term, d) a 12% interest rate, and e) a 2% origination fee.

Carlos plans to sell the property when the note expires for $275,000. If he accomplishes his goal, the outcome would be the following:

$275,000 sales price
- $187,000 principle (85% LTV)
- $33,000 down payment (15% on 85% LTV)
- $3,740 origination fee (2% of the $187,000 principle amount)
- $33,660 total interest paid (18 months x 12% interest)
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= $17,600 total profit (does not include taxes or renovation costs)

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