Renovo Capital

About Renovo Capital

Headquartered in Wayzata, MN, Renovo Capital is a hard money lender providing funding in Minneapolis, St Paul, Duluth, St Cloud, and Rochester. They offer fix-and-flip hard money loans, hard money refinancing, and ground up construction loans. Their loan guidelines are versatile, including loan amounts starting from $80,000 with a maximum LTV of 65% and rates starting at 10% . They will consider various lending requests but usually focus on single family units and multi-family units.

Loan Types Offered: Fix and Flip Loans, New Construction Loans, Refinance / Cash Out Loans

Property Types Covered: Single Family, Multi Family

Areas Served: Minneapolis, St Paul, Duluth, St Cloud, Rochester

Licenses: NMLS #1003959

Lending Guidelines for Renovo Capital

Below are the general loan guidelines published on the Renovo 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 Renovo Capital.

Loan Example 1

Marissa closes on a $150,000 renovation project in Minneapolis, MN, using a fix-and-flip loan from Renovo Capital. The lender agrees to issue a note with a 55% loan-to-value (LTV) so they will loan $82,500 on the project. The parameters of the deal dictate a 10% note for 6 months. They also require a 3 point origination fee, which will also have to be paid when the property closes.

Therefore, the borrower will need to contribute a $67,500 down payment plus pay a $2,475 origination fee. she must then pay $688 per month to Renovo Capital. If Marissa meets her goal of a $210,000 total sales price when the loan term expires, she would earn a gross profit of $53,400 after repaying the principle on the note and subtracting the money she contributed at closing, the origination fee, and the total interest payments.

Loan Example 2

Raymond locates a townhouse in Minneapolis, MN to remodel and resell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from Renovo Capital with the following parameters:

$210,000 sales price
70% loan-to-value (LTV)
18 month term
8% rate of interest
5% origination fee

Once the renovation project is finished, if Raymond sells the property for $283,500, the outcome would be the following:

$283,500 sales price
- $147,000 principle (70% LTV)
- $63,000 cash paid at closing (30% on 70% LTV)
- $7,350 origination fee (5% of the $147,000 principle)
- $17,640 interest payments (18 months x 8% interest)
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= $48,510 total profit (doesn't include taxes or renovation costs)

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