Paramount Capital

About Paramount Capital

Paramount Capital is a private lender headquartered in Houston, TX offering loans all across the United States. They offer commercial loans, buy and hold loans, and fix-and-flip loans. They provide loans on most property types, including single family residences, multi family residences, apartments, offices, retail spaces, and mixed use.

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

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

Areas Served: National

Lending Guidelines for Paramount Capital

Below are the general loan guidelines published on the Paramount Capital 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 Paramount Capital.

Loan Example 1

Curtis takes a fix-and-flip loan from Paramount Capital in order to remodel a condo to resale in Washington DC, DC. The price of the house is $160,000. The borrower will have to bring 30% of the purchase price in cash to closing based on a 70% loan-to-value stipulated by the lender. This makes the principle amount from Paramount Capital $112,000. The terms of the loan also include a five percent origination fee which is to be paid at closing and a 12 month, interest-only note with a 10% rate of interest.

Therefore, Curtis will be required to make a $48,000 down payment in addition to paying a $5,600 origination fee. The lender will collect $933 in monthly interest payments from the Curtis. This is computed by taking the total loan amount of $112,000, multiplying by the 10% rate of interest, and then dividing that number by 12. At the end of the loan, he sells the renovated house for $240,000. After subtracting the $11,200 in interest payments ($933 multiplied by 12 months), the $5,600 origination fee, the $112,000 principle on the loan, and the $48,000 he contributed to closing, he will earn a gross profit of $63,200 ($240,000 price minus $176,800 in costs). This amount would then be reduced by any renovation costs paid out of pocket.

Loan Example 2

Kathryn is a an investor in Kansas City, MO. She purchases an older house for a rehab project and obtains a hard money loan from Paramount Capital with the following terms:

a) A $210,000 purchase price, b) a 55% loan to value (LTV), c) a 18 month term, d) a 9% interest rate, and e) a 3% origination fee.

Based on a $283,500 sales price after the 18 month term, the outcome for the project would look like this:

$283,500 sales price
- $115,500 note principle (55% LTV)
- $94,500 down payment (45% on 55% LTV)
- $3,465 origination points (3% of the $115,500 principle amount)
- $15,593 total interest paid (18 months x 9% interest)
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= $54,443 total profit (does not include taxes or renovation costs)

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