Paces Funding

About Paces Funding

Paces Funding is hard money lender based in Atlanta, GA. They offer loans in Nashville and Atlanta. They offer lending solutions for a variety of needs and situations, including hard money construction loans, investment property loans, commercial loans, and fix and flip hard money loans. They issue terms up to 1 year, loan amounts ranging from $20,000 to $3,000,000 with a maximum LTV of 65%, and rates starting at 10% . They lend funds to all borrowers based on the value of the property and do not require a minimum credit score. They offer loans on many types of properties, including single family homes, multi-family, apartment buildings, office buildings, retail spaces, storage facilities, mixed use buildings, hotels and motels, warehouse buildings, and industrial facilities.

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

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Storage, Mixed Use, Hotel, Warehouse, Industrial

Areas Served: Nashville, Atlanta, FL

Lending Guidelines for Paces Funding

Below are the general loan guidelines published on the Paces Funding 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 Paces Funding.

Loan Example 1

Lesley is a real estate investor in Nashville, TN. She finds an older property for sale and wants to rehab it and sell it for a profit. The property costs $180,000 but she does not have the full amount so she takes a private money loan with Paces Funding. The terms of the deal include a 60% loan-to-value (LTV), so she must contribute 40% of the price as cash at closing, making the principle loan amount $108,000. The interest rate on the loan is 8% for a term of 6 months and the lender requires a three point origination fee at closing. The interest payments are to be paid monthly and the principle will be paid back after the property sells.

Lesley will need to contribute a total of $32,400 up front to pay the $72,000 down payment in addition to the $3,240 origination fee. Once the deal closes, she will need to pay Paces Funding $720 in monthly interest payments, or 8% times $108,000 divided by 12 months in a year. If Lesley sells the house for $261,000 after 6 months, she would then earn a total profit of $73,440 after deducting the original principle of $108,000, the money contributed at closing of $72,000, the origination fee of $3,240, and the aggregate interest payments of $4,320. This amount does not account for remodeling costs.

Loan Example 2

Bertha takes out a hard money loan from Paces Funding so she can renovate a townhouse to re-sell in Nashville, TN. The deal has the following terms:

a) A $210,000 purchase price, b) a 55% loan-to-value (LTV), c) a 12 month term, d) a 12% interest rate, and e) a 3% origination fee.

Assuming a $262,500 sales price at the end of the 12 month term, the final numbers for the deal would look like the following:

$262,500 sales price
- $115,500 note principle (55% LTV)
- $94,500 down payment (45% on 55% LTV)
- $3,465 origination fee (3% of the $115,500 principle amount)
- $13,860 total interest paid (12 months x 12% interest)
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= $35,175 gross profit (doesn't include taxes or renovation costs)