Old North Capital Fund

About Old North Capital Fund

Headquartered in Charlotte, NC, Old North Capital Fund is a private money lender offering loans in North Carolina. They provide lending solutions for many different situations, including fix and flip loans, hard money bridge loans, and construction loans. Their loan parameters are versatile, including rates ranging from 13.75%, terms up to 6 months, and loan amounts ranging from $50,000 to $20,000,000 with a maximum LTV of 70%. They lend funds to all borrowers based on the value of the property and not on a minimum credit score. The focus of their lending is on single family homes and multi-family units.

Loan Types Offered: Fix and Flip Loans, New Construction Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family

Areas Served: NC

Lending Guidelines for Old North Capital Fund

Below are the general loan guidelines published on the Old North Capital Fund 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 Old North Capital Fund.

Loan Example 1

Petra takes a hard money loan from Old North Capital Fund in order to rehab a property to resale in Charlotte, NC. The price of the house is $190,000. The lender agrees to issue a loan with a 65% loan to value (LTV) so they will loan $123,500 on the project. The parameters of the loan dictate a 12% note for 12 months. They also stipulate a 5 point origination fee, that will also have to be paid upon closing.

In addition to paying the $6,175 origination fee, Petra will also have to fund $66,500 of the purchase with her own money, or 35% of the purchase price. The lender will collect $1,235 in monthly interest payments from the Petra. This is calculated by taking the full loan value of $123,500, multiplying by the 12% rate of interest, and then dividing that number by 12. At the expiration of the loan, she sells the rehabed house for $285,000. After deducting the $14,820 in interest payments ($1,235 multiplied by 12 months), the $6,175 origination fee, the $123,500 principle amount on the loan, and the $66,500 she brought to closing, she will earn a total profit of $74,005 ($285,000 price minus $210,995 in costs). This amount would then be reduced by any renovation costs paid by the borrow.

Loan Example 2

Lonnie takes a hard money loan from Old North Capital Fund in order to rehab a townhome to resell in Charlotte, NC. The deal has the following parameters:

a) A $400,000 sales price, b) a 55% loan-to-value (LTV), c) a 18 month term, d) a 14% interest rate, and e) a 5% origination fee.

If Lonnie achieves his goal of a $600,000 sales price, the outcome of the deal will be the following:

$600,000 sales price
- $220,000 loan principle (55% LTV)
- $180,000 cash paid at closing (45% on 55% LTV)
- $11,000 origination fee (5% of the $220,000 principle amount)
- $46,200 total interest paid (18 months x 14% interest)
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= $142,800 gross profit (does not include taxes or renovation costs)

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