Rain City Capital

About Rain City Capital

Rain City Capital offers financing solutions to real estate investors in the state of Washington. They specialize in short-term loans for residential real estate and can close loans very quickly. Their rates start at just 12% with two origination points and they offer terms from 5 months to 2 years.

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

Property Types Covered: Single Family, Multi Family

Areas Served: WA

Lending Guidelines for Rain City Capital

Below are the general loan guidelines published on the Rain City 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 Rain City Capital.

Loan Example 1

Alexandra takes a loan from Rain City Capital in order to rehab a townhouse to flip in Portland, OR. The price of the property is $220,000. The terms of the note include a 65% loan to value (LTV), so she must bring 35% of the price as cash at closing, making the principle note amount $143,000. The loan is interest-only, paid monthly, and is for 18 months at 13% interest with 4 origination points paid at closing.

Alexandra will have to bring $77,000 at the closing (35% on the 65% loan-to-value), plus she will need to pay the $5,720 origination fee. Once the loan is closed and Alexandra takes the project, she will have to begin making monthly payments of $1,549 to the lender ($143,000 principle x 13% / 12 months). Assuming Alexandra sells the rehabed project for $297,000 at the end of the 18 month term, her gross profit (not accounting for rehab expenses) would be $43,395. This is computed by taking the purchase price ($297,000) and subtracting the original note amount ($143,000), the origination cost ($5,720), the funds she brought to closing ($77,000), and the total interest payments ($27,885).

Loan Example 2

Ted is a an investor in Portland, OR. He locates a run-down house for a rehab project and obtains a private money loan from Rain City Capital with the following features:

a) A $310,000 sales price, b) a 55% loan to value (LTV), c) a 6 month term, d) a 8% interest rate, and e) a 2% origination fee.

Assuming a $465,000 sales price after the 6 month term, the numbers for this project would look like the following:

$465,000 sales price
- $170,500 principle (55% LTV)
- $139,500 down payment (45% on 55% LTV)
- $3,410 origination points (2% of the $170,500 principle)
- $6,820 total interest paid (6 months x 8% interest)
-----------------------
= $144,770 total profit (does not include taxes or renovation costs)

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