Northeast Lending Services

About Northeast Lending Services

Based in North Bergen, NJ, Northeast Lending Services is a private lender offering loans in 9 states throughout the US. They provide lending solutions for many different scenarios, including commercial loans, buy and hold loans, and short term fix and flip loans. They issue terms between 6 months and 1 year and loan amounts ranging from $50,000 to $5,000,000. They make loans on numerous property types, including multi family residences, apartments, offices, retail spaces, hotels/motels, storage buildings, assisted living facilities, mixed use buildings, undeveloped land, and warehouse buildings.

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

Property Types Covered: Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Land, Warehouse

Areas Served: NJ, NY, CT, PA, MD, MA, NH, VT, RI

Lending Guidelines for Northeast Lending Services

Below are the general loan guidelines published on the Northeast Lending Services 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 Northeast Lending Services.

Loan Example 1

Edwin closes on a $320,000 rehab project in Brooklyn, NY, using a fix and flip loan from Northeast Lending Services. Because the lender agrees to a 80% loan to value, Edwin will have to put 20% down and the total amount of the loan will be $256,000. The rate on the loan is 10% for a term of 18 months and the company requires a one point origination fee at closing. The interest is to be paid on a monthly basis and the principle will be repaid after the sale of the property.

The borrower must fund a total of $32,400 up front to cover the $64,000 down payment in addition to the $2,560 origination fee. After the loan is closed and Edwin takes the project, he will need to begin making monthly payments of $2,133 to the lender ($256,000 principle x 10% / 12 months). If Edwin sells the project for $416,000 after 18 months, he would then make a gross profit of $55,040 after deducting the original principle of $256,000, the cash paid at the close of $64,000, the origination points of $2,560, and the aggregate interest payments of $38,400. This profit doesn't account for remodeling costs.

Loan Example 2

Jeremy is a an investor in Brooklyn, NY. He purchases an older property for a renovation project and takes out a hard money loan from Northeast Lending Services with the following terms:

a) A $270,000 purchase price, b) a 70% loan to value (LTV), c) a 18 month term, d) a 14% interest rate, and e) a 2% origination fee.

If Jeremy succeeds in his goal of a $364,500 sales price, the outcome of the deal will be as follows:

$364,500 sales price
- $189,000 principle (70% LTV)
- $81,000 down payment (30% on 70% LTV)
- $3,780 origination points (2% of the $189,000 principle)
- $39,690 total interest paid (18 months x 14% interest)
-----------------------
= $51,030 gross profit (does not include taxes or renovation costs)

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