Red Dirt Lending

About Red Dirt Lending

Red Dirt Lending is an Oklahoma City, OK based private money lender. They offer loans throughout Minneapolis, St Paul, Oklahoma City, and Tulsa. They offer loans for a variety of needs and situations, including loans for rental properties and fix and flip hard money loans. They offer terms up to 1 year, loans with a maximum LTV of 70%, and rates starting at 12%. They will consider different loan requests but usually focus on single family units and multi-family.

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

Property Types Covered: Single Family, Multi Family

Areas Served: Minneapolis, St Paul, Oklahoma City, Tulsa

Lending Guidelines for Red Dirt Lending

Below are the general loan guidelines published on the Red Dirt Lending 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 Red Dirt Lending.

Loan Example 1

Bridgette closes on a $300,000 rehab project in Minneapolis, MN, using a fix and flip loan from Red Dirt Lending. The borrower will be required to bring 25% of the sales price in cash to the closing based on a 75% loan-to-value set by the lender. This makes the principle amount from Red Dirt Lending $225,000. The rate on the loan is 12% for a length of 18 months and the company requires a five point origination fee at closing. The interest payments are to be paid monthly and the principle amount will be repaid after the sale of the property.

Bridgette will need to bring $75,000 at closing (25% on the 75% loan-to-value), plus she will pay the $11,250 origination fee. she must then pay $2,250 monthly to Red Dirt Lending. At the expiration of the loan, she sells the renovated property for $390,000. After deducting the $40,500 in interest expenses ($2,250 times 18 months), the $11,250 origination fee, the $225,000 principle on the loan, and the $75,000 she contributed to the closing, she will earn a total profit of $38,250 ($390,000 price minus $351,750 in costs). This amount would then be reduced by any rehab costs paid by Bridgette.

Loan Example 2

Red Dirt Lending makes a loan to Socorro for a remodeling project in Minneapolis, MN. The deal dictates the following:

$250,000 sales price
50% loan-to-value (LTV)
18 month term
14% interest rate
3% origination fee

Once the renovation project is completed, if Socorro sells the project for $300,000, the outcome would be as follows:

$300,000 sales price
- $125,000 principle (50% LTV)
- $125,000 cash paid at closing (50% on 50% LTV)
- $3,750 origination points (3% of the $125,000 principle amount)
- $26,250 total interest paid (18 months x 14% interest)
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= $20,000 total profit (does not include taxes or renovation costs)