Northwest Money Source

About Northwest Money Source

Northwest Money Source is an asset-based lender in Portland, OR offering loans throughout Yakima, Castle Rock, and Longview. Their focus is primarily on hard money loans for commercial properties. They make loans on all of the following property types: multi family, apartments, office units, retail units, mixed use, and industrial buildings.

Loan Types Offered: Commercial Hard Money Loans

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

Areas Served: Yakima, Castle Rock, Longview, OR

Lending Guidelines for Northwest Money Source

Below are the general loan guidelines published on the Northwest Money Source 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 Northwest Money Source.

Loan Example 1

Northwest Money Source makes a hard money loan to Jamie for the acquisition of a new office space after she is denied a conventional mortgage loan by her local bank due to a low credit rating. The lender agrees to a 60% loan to value (LTV) on the deal and the new building costs $220,000, so they will contribute $132,000 and Jamie will bring the other $88,000. In addition, the lender will require a 5 percent origination fee to go along with the 14%, 18 month term on the note. They agree to not charge a pre-payment penalty in the event that Jamie pays off the loan before it expires. By the terms of the loan, Jamie will pay an origination charge of $6,600 at closing (5% x $132,000 principle) and will then begin making payments of $1,540 monthly ($132,000 principle x 14% interest / 12 months). Finally, she will make a balloon payment of the $132,000 principle upon expiration of the loan, or sooner if she chooses to pay off early.

Loan Example 2

Floyd takes out a private money loan from Northwest Money Source in order to rehab a townhouse to re-sell in Yakima, WA. The loan has the following parameters:

$370,000 sales price
75% loan to value (LTV)
18 month term
11% interest rate
4% origination fee

Once the rehab project is complete, if Floyd sells the property for $481,000, the outcome would be as follows:

$481,000 sales price
- $277,500 loan principle (75% LTV)
- $92,500 down payment (25% on 75% LTV)
- $11,100 origination fee (4% of the $277,500 principle amount)
- $45,788 total interest paid (18 months x 11% interest)
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= $54,113 gross profit (doesn't include taxes or rehab costs)

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