Red Rock Capital

About Red Rock Capital

Based in Colorado Springs, CO, Red Rock Capital is a private money lender providing loans in 42 states across the United States. They offer construction loans, bridge loans, fix-and-flip loans, and loans for investments properties. Their loan parameters are flexible, including loan amounts ranging from $100,000 to $5,000,000, terms up to 1 year, and rates starting at 7.99% . The focus of their lending is -1-4 unit investment properties. They also have a long term rental loan program up to 80% LTV cash-out with rates starting at 4.99%.We also offer Non-Recourse Loans for Self-directed IRA's on our bridge, fix and flip and long term rental financing program.Apply online at: https://www.fundwithredrock.com/apply-for-loan/

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

Property Types Covered: Single Family, Multi Family

Areas Served: AK, AL, AR, CO, CT, DC, DE, FL, GA, HI, IA, ID, IL, IN, KS, KY, LA, MA, MD, ME, MI, MO, MS, MT, NC, NE, NH, NJ, NM, NY, OH, OK, PA, RI, SC, TN, TX, VA, WA, WI, WV, WY

Lending Guidelines for Red Rock Capital

Below are the general loan guidelines published on the Red Rock 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 Red Rock Capital.

Loan Example 1

Wade finds a duplex in Houston, TX to renovate and re-sell. Since he doesn't have enough cash on-hand to acquire the $170,000 property outright, he takes out a fix and flip loan from Red Rock Capital. The lender agrees to write a note with a 70% loan to value (LTV) so they are willing to extend $119,000 on the project. The parameters of the deal dictate a 14% note for 18 months. They also stipulate a 4 point origination fee, that will also need to be paid upon closing.

Wade must bring a total of $32,400 upon closing to cover the $51,000 down payment in addition to the $4,760 origination fee. The monthly interest-only payments will then be $1,388 to Red Rock Capital. If he sells the rehabed project for $229,500 at the end of the 18 month term, his total profit (not accounting for rehab expenses) would be $29,750. This is calculated by taking the sales price ($229,500) and subtracting the original note amount ($119,000), the origination cost ($4,760), the cash he brought to closing ($51,000), and the total interest payments ($24,990).

Loan Example 2

Pat is a an investor in Houston, TX. She buys an older house for a rehab project and obtains a private money loan from Red Rock Capital with the following paramters:

$220,000 purchase price
75% loan to value (LTV)
12 month term
8% rate of interest
5% origination fee

Assuming a $286,000 sales price at the end of the 12 month term, the outcome for this deal would look like the following:

$286,000 sales price
- $165,000 principle (75% LTV)
- $55,000 down payment (25% on 75% LTV)
- $8,250 origination points (5% of the $165,000 principle amount)
- $13,200 interest payments (12 months x 8% interest)
-----------------------
= $44,550 gross profit (doesn't include taxes or renovation costs)

No Reviews Yet

Red Rock Capital currently has no reviews. To add a review now, click the link below:

Write a Review for Red Rock Capital