Saratoga Capital

About Saratoga Capital

Saratoga Capital is a private lender based in Los Gatos, CA providing loans throughout California. Their focus is primarily on commercial hard money loans. Their loan guidelines are versatile, including loan amounts ranging from $250,000 to $5,000,000 with a maximum LTV of 80%, rates ranging between 7.5% and 8.75%, and terms between 12 months and 36 months. They will make loans on many types of properties, including multi-family, apartment buildings, industrial buildings, office units, retail storefronts, and mixed use spaces.

Loan Types Offered: Commercial Hard Money Loans

Property Types Covered: Multi Family, Apartment, Industrial, Office, Retail, Mixed Use

Areas Served: CA

Lending Guidelines for Saratoga Capital

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

Loan Example 1

In order to purchase a new retail space for his small business, Curtis turns to Saratoga Capital to fund his purchase with a commercial private money loan since he is not able to obtain a commercial mortgage from a bank. The lender agrees to a 60% loan-to-value (LTV) on the deal and the property is listed for $400,000, so they will loan $240,000 and Curtis will bring the remaining $160,000. The deal also specifies a 6 month length, a 11% interest rate, interest-only payments made monthly with a final payment at the end of the note (with no pre-payment penalty), and a 1 percent origination fee. Curtis may eliminate the loan at any point by paying off the $240,000 in principle, however, he will have to make $2,200 /month interest payments ($240,000 principle value x 11% interest rate / 12 months in a year) in the interim, or up to the point the loan expires. Since there isn't a pre-payment penalty, the only additional expense he would have is the $2,400 origination charge which he will contribute at the close.

Loan Example 2

Lawrence is a an investor in Los Angeles, CA. He purchases an older property for a rehab project and obtains a hard money loan from Saratoga Capital with the following terms:

$390,000 purchase price
85% loan to value (LTV)
18 month term
13% interest rate
5% origination fee

Assuming a $565,500 sales price at the end of the 18 month term, the final numbers for the deal would look like the following:

$565,500 sales price
- $331,500 note principle (85% LTV)
- $58,500 down payment (15% on 85% LTV)
- $16,575 origination points (5% of the $331,500 principle)
- $64,643 total interest paid (18 months x 13% interest)
-----------------------
= $94,283 gross profit (does not include taxes or rehab costs)

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