Riverdale Funding

About Riverdale Funding

Based in Johnson City, TN, Riverdale Funding is a hard money lender offering loans in 37 states across the country. They provide lending solutions for a variety of scenarios, including loans for investments properties, commercial hard money loans, fix and flip loans, short term loans, and refinancing. Their loan parameters are flexible, including terms between 12 months and 36 months and loan amounts starting from $25,000 with a maximum LTV of 65%. They will lend funds to any borrower based on the property value and do not require a minimum credit rating. They will make loans on the following types of properties: single family, multi family, apartments, office units, retail spaces, hotels, storage buildings, senior living communities, and mixed use buildings.

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

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

Areas Served: AK, AR, CO, CT, DC, DE, FL, GA, HI, IA, ID, IN, KS, KY, LA, MD, ME, MN, MO, MS, NC, NE, NM, NY, OH, OK, OR, PA, RI, SC, TX, UT, VA, WA, WI, WV, WY

Lending Guidelines for Riverdale Funding

Below are the general loan guidelines published on the Riverdale 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 Riverdale Funding.

Loan Example 1

Steven finds a townhouse in Houston, TX to remodel and sell. Since he does not have enough cash available to buy the $190,000 project outright, he takes out a fix and flip loan from Riverdale Funding. The borrower will be required to fund 35% of the sales price in cash to closing based on a 65% loan to value stipulated by the lender. This makes the principle note from Riverdale Funding $123,500. The deal also consists of these features: 1) a 6 month length, 2) a 9% interest-only note, and 3) a five point origination charge.

Accordingly, Steven will be required to make a $66,500 down payment plus pay a $6,175 origination fee. The lender will collect $926 in monthly interest from the Steven. This is computed by taking the total loan value of $123,500, multiplying that by the 9% interest rate, and then dividing that number by 12. Assuming he sells the renovated house for $237,500 at the end of the 6 month term, his gross profit (not accounting for rehab costs) would be $35,768. This is computed by taking the sales price ($237,500) and subtracting the principle ($123,500), the origination fee ($6,175), the cash he brought to closing ($66,500), and the total interest expenses ($5,558).

Loan Example 2

Eugenia finds a property in Houston, TX to rehab and resell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from Riverdale Funding with the following parameters:

a) A $340,000 purchase price, b) a 60% loan-to-value (LTV), c) a 6 month term, d) a 13% interest rate, and e) a 2% origination fee.

After the renovation project is finished, if Eugenia sells the house for $510,000, the numbers would be the following:

$510,000 sales price
- $204,000 principle (60% LTV)
- $136,000 cash paid at closing (40% on 60% LTV)
- $4,080 origination points (2% of the $204,000 principle amount)
- $13,260 total interest paid (6 months x 13% interest)
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= $152,660 total profit (does not include taxes or renovation costs)

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