Sherman Bridge Lending

About Sherman Bridge Lending

Sherman Bridge Lending is a hard money lender headquartered in Irving, TX.They current lend in the following states: AL, CA, CO, FL, GA, KS, KY, MD, MO, NJ, NC, OH, OK, PA, SC, TN, TX, VA, WI and the District of Columbia.Sherman Bridge Lending provides short-term fix-and-flip and rental loans to real estate investors. They provide funding primarily on single-family homes. Loan amounts range from $75,000 to $1,000,000 with a maximum LTV of 75%.Their loan guidelines require a minimum FICO score of 600.

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

Property Types Covered: Single Family

Areas Served: Philadelphia, TX, CA, GA, FL, NJ, AL, CO, DC, KS, MD, MO, NC, OH, OK, PA, SC, TN, VA, WI

Licenses: NMLS ID#1031946

Lending Guidelines for Sherman Bridge Lending

Below are the general loan guidelines published on the Sherman Bridge Lending 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 Sherman Bridge Lending.

Loan Example 1

Willa finds a property in Philadelphia, PA to flip and resell. Since she doesn't have enough cash on-hand to buy the $380,000 house outright, she takes out a hard money loan from Sherman Bridge Lending. The lender agrees to write a loan with a 75% loan to value (LTV) so they will extend $285,000 on the house. The terms of the note also stipulate a three point origination fee which is to be paid at closing and a 18 month, interest-only note with a 13% interest rate.

On top of the $8,550 origination fee, Willa will also have to fund $95,000 of the purchase with her own funds, or 25% of the purchase price. she will then pay $3,088 monthly to the lender. At the expiration of the loan, she sells the rehabed house for $532,000. After deducting the $55,575 in total interest payments ($3,088 multiplied times 18 months), the $8,550 origination fee, the $285,000 principle amount on the loan, and the $95,000 she contributed to closing, she will earn a gross profit of $87,875 ($532,000 price minus $444,125 in costs). This profit would then be reduced by any rehab costs paid out of pocket.

Loan Example 2

Brian is a real estate investor in Philadelphia, PA. He purchases a run-down property for a remodeling project and obtains a private money loan from Sherman Bridge Lending with the following paramters:

a) A $260,000 purchase price, b) a 75% loan-to-value (LTV), c) a 18 month term, d) a 11% interest rate, and e) a 2% origination fee.

After the rehab project is completed, if Brian sells the house for $325,000, the final numbers would be the following:

$325,000 sales price
- $195,000 principle on note (75% LTV)
- $65,000 down payment (25% on 75% LTV)
- $3,900 origination fee (2% of the $195,000 principle)
- $32,175 interest payments (18 months x 11% interest)
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= $28,925 total profit (does not include taxes or renovation costs)