Parapet Capital

About Parapet Capital

Parapet Capital is a New York, NY based hard money lender. They provide loans in New York City. They offer short term loans, fix and flip loans, and rental property loans. They issue terms up to 12 months, loan amounts ranging from $100,000 to $500,000 with a maximum LTV of 70%, and rates ranging between 12% and 14%. They do not require their borrowers to have a minimum FICO rating to obtain a loan. They provide loans on most property types, including single family homes, multi-family units, undeveloped land, and apartments.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Land, Apartment

Areas Served: New York City

Lending Guidelines for Parapet Capital

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

Loan Example 1

Georgia closes on a $220,000 rehab project in Cos Cob, CT, using a hard money loan from Parapet Capital. Since the lender agrees to a 75% loan-to-value, Georgia will need to put 25% down so the principle amount of the note will be $165,000. The deal also consists of these features: 1) a 6 month term, 2) a 14% interest-only note, and 3) a five percent origination fee.

In addition to paying the $8,250 origination fee, Georgia will also fund $55,000 of the purchase with her own cash, or 25% of the purchase price. Once the deal is executed and Georgia takes the property, she will need to begin making monthly payments of $1,925 to Parapet Capital ($165,000 principle x 14% / 12 months). At the end of the loan, she sells the rehabed property for $308,000. After deducting the $11,550 in total interest payments ($1,925 times 6 months), the $8,250 origination fee, the $165,000 principle on the loan, and the $55,000 she brought to the closing, she will earn a gross profit of $68,200 ($308,000 price minus $239,800 in total costs). This amount would then be reduced by any renovation costs paid by the borrow.

Loan Example 2

Edwin locates a townhouse in Cos Cob, CT to renovate and resell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from Parapet Capital with the following parameters:

a) A $230,000 sales price, b) a 85% loan to value (LTV), c) a 6 month term, d) a 8% interest rate, and e) a 4% origination fee.

Based on a $333,500 sales price at the end of the 6 month term, the final numbers for this deal would look like this:

$333,500 sales price
- $195,500 principle on note (85% LTV)
- $34,500 down payment (15% on 85% LTV)
- $7,820 origination points (4% of the $195,500 principle)
- $7,820 interest payments (6 months x 8% interest)
-----------------------
= $87,860 gross profit (doesn't include taxes or rehab costs)

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