Sachem Capital

About Sachem Capital

Sachem Capital is a Branford, CT based hard money lender. They provide loans throughout New York, New Jersey, and Connecticut. They offer commercial loans, fix and flip loans, investment property loans, and bridge loans. They provide terms between 1 year and 3 years and loan amounts ranging from $30,000 to $750,000 with a maximum LTV of 50%. The focus of their lending is for single family and multi-family.

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

Property Types Covered: Single Family, Multi Family

Areas Served: NY, NJ, CT

Lending Guidelines for Sachem Capital

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

Loan Example 1

Margret is an investor in Brooklyn, NY. She finds a run-down property for sale and decides to remodel it and flip it for a profit. The property costs $290,000 but she doesn't have the full amount so she obtains a private money loan with Sachem Capital. The lender agrees to issue a note with a 55% loan to value (LTV) so they will loan $159,500 on the project. The rate on the loan is 8% for a term of 18 months and the company requires a three point origination fee at the closing. The interest payments are to be paid on a monthly basis and the principle will be paid back after the property sells.

The borrower will need to fund a total of $32,400 upon closing to pay the $130,500 down payment plus the $4,785 origination fee. The lender will collect $1,063 in monthly interest payments from the borrower. This is computed by taking the full loan amount of $159,500, multiplying by the 8% interest rate, and then dividing that number by 12. If Margret achieves her goal of a $420,500 sales price when the loan term expires, she would pocket a gross profit of $106,575 after re-paying the principle and deducting the money she paid at closing, the origination points, and the monthly interest payments.

Loan Example 2

Mona takes a private money loan from Sachem Capital so she can renovate a house to resell in Brooklyn, NY. The loan has the following terms:

$230,000 purchase price
85% loan to value (LTV)
12 month term
14% rate of interest
1% origination fee

Mona intends to sell the property when the note expires for $345,000. If she succeeds, the deal numbers will be the following:

$345,000 sales price
- $195,500 loan principle (85% LTV)
- $34,500 down payment (15% on 85% LTV)
- $1,955 origination fee (1% of the $195,500 principle)
- $27,370 interest payments (12 months x 14% interest)
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= $85,675 total profit (doesn't include taxes or rehab costs)

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