Red Tower Capital

About Red Tower Capital

Red Tower Capital is hard money lender based in San Francisco, CA. They provide funding across these areas: San Francisco County, Marin County, Alameda County, San Mateo County, Sonoma County, Napa County, Santa Clara County, Contra Costa County, and Solano County. They offer loans for many different situations, including buy and hold loans, fix and flip loans, commercial hard money loans, and cash out loans. Their lending parameters are flexible, including terms between 6 months and 24 months, loan amounts ranging from $50,000 to $3,000,000 with a maximum LTV of 70%, and rates ranging between 9% and 11%. They do not require a minimum FICO rating to receive a loan. They will make loans on various types of properties, including single family residences, multi-family, apartments, offices, retail storefronts, hotels and motels, storage facilities, senior facilities, mixed use, undeveloped land, churches, warehouses, and industrial facilities.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans, Refinance / Cash Out Loans

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

Areas Served: San Francisco County, Marin County, Alameda County, San Mateo County, Sonoma County, Napa County, Santa Clara County, Contra Costa County, Solano County

Licenses: CA BRE# 01912381, NMLS# 951838

Lending Guidelines for Red Tower Capital

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

Loan Example 1

Laura takes a fix and flip loan from Red Tower Capital in order to remodel a condo to flip in San Jose, CA. The price of the property is $400,000. The lender agrees to issue a note with a 80% loan to value (LTV) so they are willing to extend $320,000 on the house. The note is interest-only, paid monthly, and is for 18 months at 8% interest with 5 origination points to be paid when the deal closes.

On top of the $16,000 origination fee, Laura will also need to fund $80,000 of the purchase with her own funds, or 20% of the sales price. she will then pay $2,133 per month to Red Tower Capital. If Laura sells the house for $520,000 after 18 months, she would then make a total profit of $65,600 after subtracting the original principle of $320,000, the funds paid at the close of $80,000, the origination points of $16,000, and the aggregate interest payments of $38,400. This profit does not account for rehab costs.

Loan Example 2

Clifton takes a loan from Red Tower Capital so he can remodel a townhome to resell in San Jose, CA. The deal has the following parameters:

$330,000 purchase price
65% loan to value (LTV)
6 month term
14% rate of interest
2% origination fee

If Clifton achieves his goal of a $429,000 sales price, the final numbers of the project will be the following:

$429,000 sales price
- $214,500 note principle (65% LTV)
- $115,500 down payment (35% on 65% LTV)
- $4,290 origination points (2% of the $214,500 principle amount)
- $15,015 interest payments (6 months x 14% interest)
-----------------------
= $79,695 gross profit (does not include taxes or renovation costs)

No Reviews Yet

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

Write a Review for Red Tower Capital