Pacific Mortgage Exchange

About Pacific Mortgage Exchange

Pacific Mortgage Exchange is private lender headquartered in Palm Desert, CA. They provide funding throughout Southern California. They offer lending solutions for a variety of situations and needs, including private commercial loans and fix-and-flip loans. They provide loans on the following property types: single family residences, multi-family, apartments, office units, retail units, hotels, storage facilities, assisted living communities, mixed use, warehouse spaces, industrial facilities, medical facilities, raw land, and churches.

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

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

Areas Served: Southern California

Licenses: BRE BROKER LIC# 0065444

Lending Guidelines for Pacific Mortgage Exchange

Below are the general loan guidelines published on the Pacific Mortgage Exchange 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 Pacific Mortgage Exchange.

Loan Example 1

Marshall is a house flipper in Acton, CA. He discovers a run-down property and decides to remodel it and sell it for a profit. The property costs $370,000 but he doesn't have the full amount so he takes out a fix-and-flip loan with Pacific Mortgage Exchange. Since the lender agrees to a 50% loan to value, Marshall will have to put 50% down and the total amount of the loan will be $185,000. The interest rate on the loan is 13% for a term of 18 months and the lender requires a one point origination fee at the close. The interest is to be paid monthly and the principle amount will be returned after the property sells.

By the terms of the deal, Marshall will be required to pay a $1,850 origination fee plus 50% of the sales price, or $185,000, since there is a 50% LTV. Pacific Mortgage Exchange will collect $2,004 in monthly interest payments from the Marshall. This is computed by taking the full loan amount of $185,000, multiplying by the 13% rate of interest, and then dividing that number by 12. Marshall's plan is to finish the rehab within the 18 months and re-sell it for $555,000. If he succeeds he will collect a profit of $147,075 ($555,000 sales price - $185,000 principle - $185,000 cash at closing - $1,850 origination fee - $36,075 in total interest.

Loan Example 2

Charlie locates a property in Acton, CA to renovate and re-sell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from Pacific Mortgage Exchange with the following parameters:

$370,000 purchase price
75% loan-to-value (LTV)
12 month term
8% rate of interest
5% origination fee

If Charlie accomplishes his goal of a $555,000 sales price, the numbers of the deal will be as follows:

$555,000 sales price
- $277,500 principle on note (75% LTV)
- $92,500 down payment (25% on 75% LTV)
- $13,875 origination points (5% of the $277,500 principle amount)
- $22,200 interest payments (12 months x 8% interest)
-----------------------
= $148,925 gross profit (does not include taxes or rehab costs)

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