Residential Capital Partners

About Residential Capital Partners

Residential Capital Partners is hard money lender based in Dallas, TX. They offer funding in North Carolina, South Carolina, New Jersey, New York, Connecticut, Pennsylvania, and Texas. They offer lending solutions for many different needs and situations, including fix and flip loans and short term bridge loans. They offer terms up to 9 months, loan amounts ranging from $75,000 to $1,500,000 with a maximum LTV of 65%, and rates from 10%. They do not require a minimum FICO score to receive a loan. The focus of their loans is for single family homes and multi family.

Loan Types Offered: Fix and Flip Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family

Areas Served: NC, SC, NJ, NY, CT, PA, TX

Lending Guidelines for Residential Capital Partners

Below are the general loan guidelines published on the Residential Capital Partners 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 Residential Capital Partners.

Loan Example 1

Craig finds a house in Houston, TX to flip and re-sell. Since he does not have enough cash available to acquire the $220,000 project outright, he takes out a fix-and-flip loan from Residential Capital Partners. The terms of the loan include a 50% loan to value (LTV), so he must bring 50% of the price as cash at closing, which makes the principle note amount $110,000. The rate on the loan is 8% for a term of 18 months and the company requires a one point origination fee at the close. The interest payments are to be paid monthly and the principle amount will be repaid after the property sells.

Craig will have to bring $110,000 at the closing (50% on the 50% loan-to-value), plus he will need to pay the $1,100 origination fee. Once the loan closes, he will need to pay the lender $733 in monthly interest fees, or 8% multiplied by $110,000 divided by 12 months in the year. If he sells the renovated project for $286,000 at the end of the 18 month term, his total profit (not accounting for renovation expenses) would be $51,700. This is computed by taking the sales price ($286,000) and subtracting the original note amount ($110,000), the origination cost ($1,100), the cash he brought to closing ($110,000), and the total interest expenses ($13,200).

Loan Example 2

Residential Capital Partners issues a hard money loan to Joyce for a remodeling project in Houston, TX. The deal includes the following:

a) A $210,000 sales price, b) a 85% loan-to-value (LTV), c) a 18 month term, d) a 12% interest rate, and e) a 5% origination fee.

Assuming a $294,000 sales price after the 18 month term, the numbers for this deal would look like the following:

$294,000 sales price
- $178,500 principle (85% LTV)
- $31,500 cash paid at closing (15% on 85% LTV)
- $8,925 origination points (5% of the $178,500 principle amount)
- $32,130 interest payments (18 months x 12% interest)
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= $42,945 total profit (does not include taxes or rehab costs)