Sandstone Capital

About Sandstone Capital

Sandstone Capital is a Los Angeles, CA based private money lender who offers funding throughout California. They offer private commercial loans and fix-and-flip loans. They provide terms up to 3 years and loan amounts ranging from $200,000 to $3,000,000 with a maximum LTV of 75%. Their loan guidelines do not include a minimum credit score. They provide loans on the following property types: single family, multi-family, apartment buildings, office buildings, retail units, hotels, storage buildings, assisted living facilities, mixed use buildings, warehouses, industrial facilities, and medical offices.

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

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

Areas Served: CA

Licenses: Cal BRE 01984678

Lending Guidelines for Sandstone Capital

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

Loan Example 1

Linda is an investor in Los Angeles, CA. She locates a run-down property for sale and wants to remodel it and sell it for a profit. The house has a cost of $360,000 but she doesn't have the full amount so she takes a fix and flip loan with Sandstone Capital. The borrower will be required to fund 15% of the sales price in cash to closing based on a 85% loan-to-value set by the lending company. This makes the loan principle from Sandstone Capital $306,000. The parameters of the deal also stipulate a one point origination fee which will be paid at closing and a 12 month, interest only note with a 13% interest rate.

In accordance with the terms of the loan, Linda will be required to contribute a $3,060 origination fee plus 15% of the sales price, or $54,000, since there is a 85% LTV. she must then pay $3,315 per month to Sandstone Capital. Linda's intention is to finish the renovation within the 12 months and sell it for $450,000. If she succeeds she will collect a profit of $47,160 ($450,000 price - $306,000 principle - $54,000 funds brough to closing - $3,060 origination fee - $39,780 in total interest paid.

Loan Example 2

Alyssa locates a property in Los Angeles, CA 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 Sandstone Capital with the following parameters:

a) A $290,000 purchase price, b) a 75% loan-to-value (LTV), c) a 12 month term, d) a 11% interest rate, and e) a 4% origination fee.

Assuming a $391,500 sales price at the end of the 12 month term, the final numbers for this project would look like this:

$391,500 sales price
- $217,500 principle (75% LTV)
- $72,500 down payment (25% on 75% LTV)
- $8,700 origination points (4% of the $217,500 principle)
- $23,925 total interest paid (12 months x 11% interest)
-----------------------
= $68,875 gross profit (doesn't include taxes or renovation costs)

No Reviews Yet

Sandstone Capital currently has no reviews. To add a review now, click the link below:

Write a Review for Sandstone Capital