Puget Sound Investors

About Puget Sound Investors

Based in Mount Vernon, WA, Puget Sound Investors is a private money lender offering loans throughout Everett, Seattle, Tacoma, and Olympia. They provide bridge loans, loans for rental properties, ground-up construction loans, commercial hard money loans, and fix and flip hard money loans. They offer loan amounts ranging from $15,000 to $2,000,000 with a maximum LTV of 65%, rates ranging between 9% and 12%, and terms between 1 year and 5 years. They offer loans on all the following types of properties: single family homes, multi family, apartments, offices, retail storefronts, hotels, storage buildings, assisted living facilities, mixed use, warehouse buildings, industrial facilities, medical facilities, and raw land.

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

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

Areas Served: Everett, Seattle, Tacoma, Olympia

Lending Guidelines for Puget Sound Investors

Below are the general loan guidelines published on the Puget Sound Investors 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 Puget Sound Investors.

Loan Example 1

Abigail is a house flipper in Everett, WA. She locates a run-down property and wants to rehab it and sell it for a profit. The property costs $340,000 but she does not have the full amount so she takes out a hard money loan with Puget Sound Investors. The lender agrees to make a loan with a 70% loan-to-value (LTV) so they are willing to extend $238,000 on the house. The loan is interest only, with monthly payments, and is for 18 months at 13% interest with 4 origination points to be paid when the deal closes.

In addition to paying the $9,520 origination fee, Abigail will also fund $102,000 of the purchase with her own cash, or 30% of the sales price. Puget Sound Investors will collect $2,578 in monthly interest payments from the borrower. This is calculated by taking the full loan amount of $238,000, multiplying that by the 13% interest rate, and then dividing that amount by 12. At the end of the loan, she sells the rehabed property for $459,000. After deducting the $46,410 in interest payments ($2,578 multiplied by 18 months), the $9,520 origination fee, the $238,000 principle amount on the loan, and the $102,000 she brought to the closing, she will earn a gross profit of $63,070 ($459,000 sales price minus $395,930 in total costs). This amount would then be reduced by any building costs paid out of pocket.

Loan Example 2

Kerri locates a house in Everett, WA to remodel and sell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from Puget Sound Investors with the following parameters:

a) A $190,000 sales price, b) a 70% loan-to-value (LTV), c) a 12 month term, d) a 11% interest rate, and e) a 1% origination fee.

Kerri intends to list the house when the note expires for $228,000. If she achieves this goal, the final numbers would be the following:

$228,000 sales price
- $133,000 note principle (70% LTV)
- $57,000 cash paid at closing (30% on 70% LTV)
- $1,330 origination fee (1% of the $133,000 principle amount)
- $14,630 interest payments (12 months x 11% interest)
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= $22,040 total profit (does not include taxes or rehab costs)

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