Next-Financing

About Next-Financing

Next-Financing is based in Scottsdale, Arizona and has a satellite office in Silicon Valley, California. They offer a wide array of financing options for businesses, including fix and flip loans and loans for rental properties. They lend on residential properties including single family residences, small multi-family properties (2-4 units), condominiums, and townhouses. They offer rates on fix and flip loans between 7.19% and 12.9%.

Loan Types Offered: Fix and Flip Loans, Investment Property Loans

Property Types Covered: Single Family, Multi Family, Apartment

Areas Served: AL, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, TN, TX, UT, VT, VA, WA, WV, WI, WY, DC

Lending Guidelines for Next-Financing

Below are the general loan guidelines published on the Next-Financing 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 Next-Financing.

Loan Example 1

Rachel is a house flipper in Los Angeles, CA. She discovers an older property and decides to renovate it and sell it for a profit. The property has a cost of $380,000 but she does not have the full amount so she obtains a private money loan with Next-Financing. The borrower will need to contribute 35% of the sales price in cash to the closing based on a 65% loan to value set by the lending company. This makes the principle note from Next-Financing $247,000. The deal also consists of the following features: 1) a 12 month length, 2) a 11% interest only note, and 3) a one point origination fee.

Therefore, Rachel will be required to make a $133,000 down payment in addition to paying a $2,470 origination fee. After the deal is closed and Rachel takes on the project, she will need to begin making monthly payments of $2,264 to the lender ($247,000 principle x 11% / 12 months). Rachel's plan is to finish the house within the 12 months and sell it for $494,000. If she succeeds she will collect a profit of $84,360 ($494,000 sales price - $247,000 principle - $133,000 funds brough to closing - $2,470 origination fee - $27,170 in interest.

Loan Example 2

Jay finds a duplex in Los Angeles, CA to remodel and re-sell. Because he does not have enough cash to buy the property outright, he takes a hard money loan from Next-Financing with the following parameters:

$240,000 purchase price
85% loan-to-value (LTV)
6 month term
10% rate of interest
4% origination fee

After the renovation project is completed, if Jay sells the property for $348,000, the final numbers would be as follows:

$348,000 sales price
- $204,000 principle (85% LTV)
- $36,000 cash paid at closing (15% on 85% LTV)
- $8,160 origination points (4% of the $204,000 principle)
- $10,200 total interest paid (6 months x 10% interest)
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= $89,640 gross profit (doesn't include taxes or renovation costs)