Renovo Financial

About Renovo Financial

Headquartered in Chicago, IL, Renovo Financial is an asset-based lender providing funding across these locations: Chicago, Milwaukee, Detroit, Indianapolis, Cleveland, Cincinnati, Columbus, Philadelphia, Atlanta, Orlando, Tampa, Miami, Austin, San Antonio, Houston, St Louis, and Kansas City. They provide fix and flip loans, commercial loans, and loans for rental properties. Their loan guidelines are versatile, including terms between 6 months and 1 year and loan amounts up to $2,000,000 with a maximum LTV of 80%. They are able to lend funds to any borrower based on the value of the property but also require a minimum FICO score of 640. The focus of their loans is for single family residences, multi-family units, and mixed use buildings.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Commercial Hard Money Loans

Property Types Covered: Single Family, Multi Family, Mixed Use

Areas Served: Chicago, Milwaukee, Detroit, Indianapolis, Cleveland, Cincinnati, Columbus, Philadelphia, Atlanta, Orlando, Tampa, Miami, Austin, San Antonio, Houston, St Louis, Kansas City

Lending Guidelines for Renovo Financial

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

Loan Example 1

Renovo Financial makes a hard money loan to Tracy for a remodeling project in Chicago, IL, on a property that costs $240,000. The loan to value (LTV) on the note is 75%. This means that Tracy will need to bring 25% of the purchase price to the closing and the principle amount will be $180,000 on the loan. The terms of the loan also include a four percent origination fee that will be paid at the closing and a 18 month, interest only note with a 9% rate of interest.

Therefore, the borrower will need to contribute a $60,000 down payment in addition to paying a $7,200 origination fee. The monthly interest only payments will then total $1,350 to the lender. If Tracy sells the house for $348,000 after 18 months, he would earn a total profit of $76,500 after subtracting the principle amount of $180,000, the money paid at closing of $60,000, the origination fee of $7,200, and the total interest payments of $24,300. This amount doesn't account for rehab costs.

Loan Example 2

Renovo Financial issues a fix and flip loan to Kirk for a renovation project in Chicago, IL. The loan dictates the following:

a) A $270,000 sales price, b) a 80% loan to value (LTV), c) a 18 month term, d) a 11% interest rate, and e) a 3% origination fee.

After the renovation project is completed, if Kirk sells the project for $324,000, the numbers would be the following:

$324,000 sales price
- $216,000 principle (80% LTV)
- $54,000 cash paid at closing (20% on 80% LTV)
- $6,480 origination points (3% of the $216,000 principle amount)
- $35,640 total interest paid (18 months x 11% interest)
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= $11,880 total profit (doesn't include taxes or rehab costs)

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