NOLA Hard Money

About NOLA Hard Money

Based in Harvey, LA, NOLA Hard Money is a hard money lender providing loans throughout New Orleans. Their lending focus is primarily on fix-and-flip loans. They offer rates ranging from 15% and loans with a maximum LTV of 65%. They primarily provide funding for single family homes and multi family.

Loan Types Offered: Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: New Orleans

Lending Guidelines for NOLA Hard Money

Below are the general loan guidelines published on the NOLA Hard Money 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 NOLA Hard Money.

Loan Example 1

Jeffery takes a fix-and-flip loan from NOLA Hard Money in order to rehab a condo to flip in New Orleans, LA. The list price of the house is $160,000. The borrower will be required to fund 25% of the purchase price in cash to closing based on a 75% loan-to-value set by the lending company. This makes the principle note from NOLA Hard Money $120,000. The terms of the deal dictate a 11% note for 12 months. They also require a 1 point origination fee, which will also have to be paid at closing.

In accordance with the terms of the note, Jeffery will have to contribute a $1,200 origination fee in addition to 25% of the purchase price, or $40,000, based on the 75% LTV. After the loan is executed and Jeffery takes the project, he will need to begin making payments each month of $1,100 to the lender ($120,000 principle x 11% / 12 months). At the end of the loan, he sells the rehabed house for $224,000. After subtracting the $13,200 in interest payments ($1,100 times 12 months), the $1,200 origination fee, the $120,000 principle amount on the loan, and the $40,000 he contributed to closing, he will make a gross profit of $49,600 ($224,000 sales price minus $174,400 in costs). This amount would then be reduced by any renovation costs paid by Jeffery.

Loan Example 2

NOLA Hard Money issues a hard money loan to Brett for a rehab project in New Orleans, LA. The deal includes the following:

$210,000 purchase price
85% loan-to-value (LTV)
12 month term
9% interest rate
1% origination fee

After the rehab project is finished, if Brett sells the property for $262,500, the outcome would be as follows:

$262,500 sales price
- $178,500 note principle (85% LTV)
- $31,500 cash paid at closing (15% on 85% LTV)
- $1,785 origination points (1% of the $178,500 principle amount)
- $16,065 total interest paid (12 months x 9% interest)
-----------------------
= $34,650 gross profit (does not include taxes or rehab costs)

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