Richmond Rehab Funding

About Richmond Rehab Funding

Richmond Rehab Funding is a Manakin-Sabot, VA based hard money lender offering loans throughout Virginia Beach, Norfolk, Newport News, Elizabeth City, and Kill Devil Hills. Their lending focus is primarily on fix and flip hard money loans. They issue loans with a maximum LTV of 65%. They are able to lend money to any borrower based on the property value and do not require a minimum FICO rating. The focus of their loans is on single family and multi family residences.

Loan Types Offered: Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: Virginia Beach, Norfolk, Newport News, Elizabeth City, Kill Devil Hills

Lending Guidelines for Richmond Rehab Funding

Below are the general loan guidelines published on the Richmond Rehab Funding 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 Richmond Rehab Funding.

Loan Example 1

Clyde is a real estate investor in Virginia Beach, VA. He discovers a run-down property for sale and decides to renovate it and sell it for a profit. The house costs $350,000 but he doesn't have the full amount so he takes out a hard money loan with Richmond Rehab Funding. The borrower will need to bring 35% of the purchase price in cash to closing based on a 65% loan to value set by the lending company. This makes the principle note from Richmond Rehab Funding $227,500. The deal also includes these features: 1) a 6 month length, 2) a 10% interest-only note, and 3) a two point origination fee.

In addition to paying the $4,550 origination fee, Clyde will also have to fund $122,500 of the purchase with his own cash, or 35% of the purchase price. Richmond Rehab Funding will collect $1,896 in monthly interest from the borrower. This is calculated by taking the full loan value of $227,500, multiplying that by the 10% rate of interest, and then dividing that number by 12. At the expiration of the loan, he sells the renovated house for $420,000. After subtracting the $11,375 in interest expenses ($1,896 multiplied by 6 months), the $4,550 origination fee, the $227,500 principle amount on the loan, and the $122,500 he brought to closing, he will earn a gross profit of $54,075 ($420,000 price minus $365,925 in total costs). This profit would then be reduced by any rehab costs paid by the borrow.

Loan Example 2

Anne locates a house in Virginia Beach, VA to renovate and re-sell. Since she does not have enough cash to buy the property outright, she takes a fix and flip loan from Richmond Rehab Funding with the following parameters:

a) A $160,000 purchase price, b) a 60% loan-to-value (LTV), c) a 18 month term, d) a 11% interest rate, and e) a 1% origination fee.

Based on a $232,000 sales price at the end of the 18 month term, the final numbers for this deal would look like this:

$232,000 sales price
- $96,000 principle (60% LTV)
- $64,000 down payment (40% on 60% LTV)
- $960 origination fee (1% of the $96,000 principle amount)
- $15,840 total interest paid (18 months x 11% interest)
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= $55,200 gross profit (does not include taxes or renovation costs)

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