Silver Bay Funding

About Silver Bay Funding

Silver Bay Funding is a private lender headquartered in Granada Hills, CA providing funding in Southern California. Their focus is primarily on investment property loans. They will consider various lending requests but primarily focus on single family homes and multi family.

Loan Types Offered: Investment Property Loans

Property Types Covered: Single Family, Multi Family

Areas Served: Southern California

Licenses: California BRE: # 02012371, NMLS # 1571506

Lending Guidelines for Silver Bay Funding

Below are the general loan guidelines published on the Silver Bay Funding 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 Silver Bay Funding.

Loan Example 1

Doris is an investor in Acton, CA. She finds an older property for sale and wants to renovate it and re-sell it for a profit. The property has a cost of $340,000 but she does not have the full amount so she takes out a private money loan with Silver Bay Funding. The terms of the deal include a 60% loan to value (LTV), so she must bring 40% of the price as cash to closing, making the principle loan amount $204,000. The parameters of the loan dictate a 10% note for 18 months. They also stipulate a 3 point origination fee, that will also need to be paid when the property closes.

On top of the $6,120 origination fee, Doris will also have to fund $136,000 of the purchase with her own cash, or 40% of the sales price. she must then pay $1,700 per month to the lender. If Doris sells the property for $442,000 after 18 months, she would then realize a gross profit of $65,280 after subtracting the principle of $204,000, the money contributed at the close of $136,000, the origination points of $6,120, and the aggregate interest payments of $30,600. This amount does not account for renovation costs.

Loan Example 2

Silver Bay Funding makes a loan to Manuela for a remodeling project in Acton, CA. The deal includes the following:

a) A $400,000 purchase price, b) a 70% loan-to-value (LTV), c) a 6 month term, d) a 12% interest rate, and e) a 2% origination fee.

If Manuela achieves her goal of a $560,000 sales price, the final numbers of the deal will be the following:

$560,000 sales price
- $280,000 principle on note (70% LTV)
- $120,000 down payment (30% on 70% LTV)
- $5,600 origination points (2% of the $280,000 principle amount)
- $16,800 total interest paid (6 months x 12% interest)
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= $137,600 total profit (does not include taxes or renovation costs)