Private Funds Direct

About Private Funds Direct

Private Funds Direct is a Novato, CA based private money lender. They offer funding throughout California. They offer loans for many different needs and situations, including loans for investments properties, fix-and-flip hard money loans, and private commercial loans. They offer rates ranging between 7% and 12%, terms between 6 months and 3 years, and loan amounts ranging from $100,000 to $20,000,000 with a maximum LTV of 75%. They lend money to any borrower based on the value of the property and not on a minimum credit rating. They offer loans on all the following property types: single family units, multi family, apartments, office buildings, retail storefronts, mixed use spaces, industrial facilities, and medical offices.

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, Industrial, Medical

Areas Served: CA

Licenses: CA Department of Real Estate #01241542, NMLS ID #1130752, CFL Company License #6054605

Lending Guidelines for Private Funds Direct

Below are the general loan guidelines published on the Private Funds Direct 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 Private Funds Direct.

Loan Example 1

Howard takes a hard money loan from Private Funds Direct in order to remodel a townhome to flip in Los Angeles, CA. The sales price of the house is $340,000. The terms of the loan include a 85% loan to value (LTV), so he must contribute 15% of the price as cash at closing, which makes the principle note amount $289,000. The deal also includes these features: 1) a 18 month length, 2) a 10% interest-only note, and 3) a two percent origination charge.

Howard will have to contribute $51,000 to closing (15% on the 85% LTV), plus he will pay the $5,780 origination fee. The monthly interest-only payments will then total $2,408 to Private Funds Direct. At the end of the note, he sells the renovated house for $425,000. After deducting the $43,350 in interest payments ($2,408 times 18 months), the $5,780 origination fee, the $289,000 principle on the note, and the $51,000 he brought to the closing, he will earn a gross profit of $35,870 ($425,000 price minus $389,130 in total costs). This amount would be reduced by any rehab costs paid out of pocket.

Loan Example 2

Marianne is a real estate investor in Los Angeles, CA. She buys a run-down property for a rehab project and takes out a fix and flip loan from Private Funds Direct with the following terms:

a) A $270,000 sales price, b) a 80% loan to value (LTV), c) a 18 month term, d) a 13% interest rate, and e) a 3% origination fee.

Based on a $337,500 sales price after the 18 month term, the final numbers for this project would look like the following:

$337,500 sales price
- $216,000 loan principle (80% LTV)
- $54,000 cash paid at closing (20% on 80% LTV)
- $6,480 origination fee (3% of the $216,000 principle)
- $42,120 total interest paid (18 months x 13% interest)
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= $18,900 gross profit (does not include taxes or renovation costs)

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