Pepe Berard Capital

About Pepe Berard Capital

Pepe Berard Capital is hard money lender based in Rye Brook, NY. They provide loans in 12 states across the US. They provide private commercial loans, new construction loans, bridge loans, fix and flip hard money loans, investment property loans, and private refinancing. Their loan parameters are flexible, including loan amounts ranging from $100,000 to $5,000,000 with a maximum LTV of 75%, rates ranging between 9% and 13%, and terms between 12 months and 24 months. They provide loans on most types of properties, including single family units, multi family, apartments, offices, retail spaces, hotels, storage buildings, senior housing facilities, mixed use, and undeveloped land.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Refinance / Cash Out Loans, Bridge Loans

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

Areas Served: NY, NJ, CT, MA, PA, MD, DC, VA, NC, SC, GA, FL

Lending Guidelines for Pepe Berard Capital

Below are the general loan guidelines published on the Pepe Berard 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 Pepe Berard Capital.

Loan Example 1

Florence is a real estate investor in Brooklyn, NY. She discovers an older property for sale and decides to renovate it and sell it for a profit. The property has a cost of $270,000 but she does not have the full amount so she takes a hard money loan with Pepe Berard Capital. The borrower will need to bring 40% of the purchase price in cash to closing based on a 60% loan to value set by the lending company. This makes the loan principle from Pepe Berard Capital $162,000. The terms of the loan dictate a 13% note for 12 months. They also require a 5 point origination fee, that will also have to be paid when the property closes.

The borrower must bring a total of $32,400 up front to pay the $108,000 down payment plus the $8,100 origination fee. After the loan is executed and Florence takes the property, she will need to begin making payments each month of $1,755 to the lender ($162,000 principle x 13% / 12 months). Assuming Florence sells the renovated project for $405,000 at the end of the 12 month term, her total profit (not including rehab costs) would be $105,840. This is computed by taking the purchase price ($405,000) and subtracting the original note amount ($162,000), the origination fee ($8,100), the funds she brought to closing ($108,000), and the total interest payments ($21,060).

Loan Example 2

Shane is a real estate investor in Brooklyn, NY. He finds an older townhouse for a renovation project and obtains a hard money loan from Pepe Berard Capital with the following features:

$330,000 sales price
85% loan-to-value (LTV)
12 month term
11% rate of interest
1% origination fee

After the rehab project is completed, if Shane sells the house for $396,000, the final numbers would be the following:

$396,000 sales price
- $280,500 principle (85% LTV)
- $49,500 down payment (15% on 85% LTV)
- $2,805 origination fee (1% of the $280,500 principle amount)
- $30,855 interest payments (12 months x 11% interest)
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= $32,340 total profit (doesn't include taxes or renovation costs)