Oakwood Lending

About Oakwood Lending

Headquartered in Raleigh, NC, Oakwood Lending is a private lender providing loans throughout North Carolina. They offer commercial loans and fix-and-flip hard money loans. Their lending parameters are flexible, including loan amounts up to $150,000 with a maximum LTV of 70%, rates starting at 12% , and terms up to 6 months. They will consider varying loan scenarios but mainly focus on single family and multi family residences.

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

Property Types Covered: Single Family, Multi Family

Areas Served: NC

Lending Guidelines for Oakwood Lending

Below are the general loan guidelines published on the Oakwood Lending 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 Oakwood Lending.

Loan Example 1

Oakwood Lending makes a fix and flip loan to Violet for a renovation project in Charlotte, NC, on a house that is listed for $210,000. The lender agrees to write a loan with a 60% loan-to-value (LTV) so they are willing to loan $126,000 on the project. The terms of the deal dictate a 11% note for 18 months. They also stipulate a 1 point origination fee, which will also have to be paid upon closing.

In addition to paying the $1,260 origination fee, Violet will also need to fund $84,000 of the purchase with her own money, or 40% of the purchase price. Once the deal is executed and Violet takes over the project, she will need to begin making payments each month of $1,155 to the lender ($126,000 principle x 11% / 12 months). If Violet accomplishes her goal of a $283,500 sales price when the loan expires, she would earn a total profit of $51,450 after repaying the principle on the note and subtracting the money she brought to closing, the origination fee, and the total interest payments.

Loan Example 2

Brad takes out a fix and flip loan from Oakwood Lending so he can remodel a townhome to re-sell in Charlotte, NC. The loan has the following terms:

a) A $160,000 purchase price, b) a 65% loan-to-value (LTV), c) a 6 month term, d) a 14% interest rate, and e) a 3% origination fee.

Once the rehab project is completed, if Brad sells the property for $216,000, the numbers would be the following:

$216,000 sales price
- $104,000 loan principle (65% LTV)
- $56,000 cash paid at closing (35% on 65% LTV)
- $3,120 origination fee (3% of the $104,000 principle)
- $7,280 interest payments (6 months x 14% interest)
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= $45,600 gross profit (doesn't include taxes or renovation costs)