Pennylane Funding, LLC

About Pennylane Funding, LLC

Pennylane Funding, LLC is a Decatur, GA based private lender. They offer loans throughout Augusta and Chattanooga. They provide short term fix and flip loans and investment property loans. The focus of their loans is for single family and multi-family.

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

Property Types Covered: Single Family, Multi Family

Areas Served: Augusta, Chattanooga, Dekalb County

Lending Guidelines for Pennylane Funding, LLC

Below are the general loan guidelines published on the Pennylane Funding, LLC 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 Pennylane Funding, LLC.

Loan Example 1

Tim closes on a $150,000 renovation project in Augusta, GA, using a hard money loan from Pennylane Funding, LLC. The lender agrees to write a loan with a 80% loan-to-value (LTV) so they will extend $120,000 on the house. The parameters of the deal also include a one percent origination fee that will be paid at closing and a 12 month, interest-only note with a 12% interest rate.

The borrower must contribute a total of $32,400 upon closing to pay the $30,000 down payment in addition to the $1,200 origination fee. Once the loan is executed and Tim takes over the project, he will begin making payments each month of $1,200 to Pennylane Funding, LLC ($120,000 principle x 12% / 12 months). Assuming Tim sells the remodeled house for $217,500 at the end of the 12 month term, his total profit (not including rehab costs) would be $51,900. This is computed by taking the purchase price ($217,500) and subtracting the original principle ($120,000), the origination cost ($1,200), the money he contributed to closing ($30,000), and the total interest expenses ($14,400).

Loan Example 2

Marcus locates a house in Augusta, GA to rehab and resell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from Pennylane Funding, LLC with the following parameters:

a) A $200,000 purchase price, b) a 60% loan to value (LTV), c) a 12 month term, d) a 13% interest rate, and e) a 2% origination fee.

Marcus intends to list the project when the note expires for $300,000. If he succeeds, the final numbers will be as follows:

$300,000 sales price
- $120,000 principle on note (60% LTV)
- $80,000 down payment (40% on 60% LTV)
- $2,400 origination points (2% of the $120,000 principle amount)
- $15,600 interest payments (12 months x 13% interest)
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= $82,000 total profit (doesn't include taxes or rehab costs)

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