Private Money Lenders

About Private Money Lenders

Private Money Lenders is a Granada Hills, CA based private money lender offering funding throughout California. They provide loans for investments properties, commercial hard money loans, ground-up construction loans, cash out hard money loans, bridge loans, and fix and flip hard money loans. Their lending guidelines are flexible, including rates starting at 7.75% . They make loans on all of the following property types: single family, multi-family units, apartment buildings, office units, retail spaces, mixed use spaces, and industrial buildings.

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, Mixed Use, Industrial

Areas Served: CA

Licenses: License Number: 01960494

Lending Guidelines for Private Money Lenders

Below are the general loan guidelines published on the Private Money Lenders 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 Money Lenders.

Loan Example 1

Eleanor takes a hard money loan from Private Money Lenders in order to remodel a condo to flip in Los Angeles, CA. The price of the property is $390,000. The borrower will need to bring 25% of the sales price in cash to closing based on a 75% loan to value set by the lender. This makes the loan principle from Private Money Lenders $292,500. The loan also has the following features: 1) a 6 month length, 2) a 14% interest only note, and 3) a four percent origination charge.

Eleanor will need to contribute a total of $32,400 upon closing to cover the $97,500 down payment plus the $11,700 origination fee. The monthly interest only payments will then total $3,413 to the lender. At the end of the note, she sells the rehabed property for $585,000. After deducting the $20,475 in total interest payments ($3,413 times 6 months), the $11,700 origination fee, the $292,500 principle amount on the note, and the $97,500 she brought to closing, she will make a total profit of $162,825 ($585,000 price minus $422,175 in costs). This amount would be reduced by any renovation costs paid by Eleanor.

Loan Example 2

Tania takes a loan from Private Money Lenders in order to remodel a house to re-sell in Los Angeles, CA. The deal has the following terms:

$270,000 purchase price
75% loan-to-value (LTV)
18 month term
11% interest rate
5% origination fee

If Tania achieves her goal of a $405,000 sales price, the outcome of the deal would be as follows:

$405,000 sales price
- $202,500 principle (75% LTV)
- $67,500 down payment (25% on 75% LTV)
- $10,125 origination points (5% of the $202,500 principle amount)
- $33,413 interest payments (18 months x 11% interest)
-----------------------
= $91,463 gross profit (doesn't include taxes or renovation costs)

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