SCHU Mortgage & Capital

About SCHU Mortgage & Capital

Based in Santa Monica, CA, SCHU Mortgage & Capital is a private lender providing funding in California. They provide short term loans, new construction loans, commercial loans, private refinancing, fix-and-flip hard money loans, and long term rental property loans. Their lending parameters are versatile, including terms up to 70 months. They offer loans on all the following types of properties: single family units, multi family residences, apartment buildings, offices, retail storefronts, hotels, storage buildings, senior communities, mixed use spaces, undeveloped land, churches, warehouse spaces, and industrial buildings.

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

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

Areas Served: CA

Licenses: BRE #01206775

Lending Guidelines for SCHU Mortgage & Capital

Below are the general loan guidelines published on the SCHU Mortgage & 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 SCHU Mortgage & Capital.

Loan Example 1

SCHU Mortgage & Capital makes a fix and flip loan to Sonja for a renovation project in Los Angeles, CA, on a property that costs $320,000. As the lender sets a 80% loan-to-value, Sonja will need to put 20% down and the principle amount of the loan will be $256,000. The rate on the loan is 13% for a term of 6 months and the lender requires a one point origination fee at the close. The interest is to be paid on a monthly basis and the principle amount will be repaid after the sale of the property.

The borrower will need to fund a total of $32,400 up front to cover the $64,000 down payment in addition to the $2,560 origination fee. After the loan closes, she will have to pay the lender $2,773 in monthly interest payments, or 13% times $256,000 divided by 12 months in a year. At the expiration of the loan, she sells the rehabed property for $432,000. After subtracting the $16,640 in interest expenses ($2,773 times 6 months), the $2,560 origination fee, the $256,000 principle on the loan, and the $64,000 she brought to the closing, she will make a gross profit of $92,800 ($432,000 sales price minus $339,200 in total costs). This profit would be reduced by any rehab costs paid by Sonja.

Loan Example 2

SCHU Mortgage & Capital issues a fix and flip loan to Bruce for a remodeling project in Los Angeles, CA. The loan dictates the following:

a) A $170,000 sales price, b) a 80% loan-to-value (LTV), c) a 12 month term, d) a 11% interest rate, and e) a 5% origination fee.

Bruce plans to sell the project at the end of the term for $229,500. If he accomplishes his goal, the outcome will be the following:

$229,500 sales price
- $136,000 note principle (80% LTV)
- $34,000 cash paid at closing (20% on 80% LTV)
- $6,800 origination fee (5% of the $136,000 principle amount)
- $14,960 interest payments (12 months x 11% interest)
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= $37,740 gross profit (does not include taxes or renovation costs)

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