Socotra Capital

About Socotra Capital

Socotra Capital is a private lender headquartered in Sacramento, CA providing loans throughout California and Nevada. They provide lending solutions for a variety of scenarios, including private refinancing, construction loans, commercial hard money loans, bridge loans, loans for investments properties, and short term fix and flip loans. Their loan guidelines are versatile, including loan amounts ranging from $30,000 to $6,000,000 with a maximum LTV of 65% and terms up to 1 year. Their loan guidelines do not require a minimum credit rating. They make loans on the following types of properties: single family units, multi-family units, apartments, office units, retail storefronts, mixed use buildings, and industrial facilities.

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, Mixed Use, Industrial

Areas Served: CA, NV

Licenses: Bureau of Real Estate #01859201, NMLS #266090, Dept. of Business Oversight CFL #60DBO52860, Socotra Capital Nevada, Inc. - Nevada Division of Mortgage Lending #4075, NMLS #1142425

Lending Guidelines for Socotra Capital

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

Loan Example 1

Juan closes on a $310,000 rehab project in Los Angeles, CA, using a hard money loan from Socotra Capital. The terms of the note include a 50% loan to value (LTV), so he must contribute 50% of the price as cash to closing, making the principle loan amount $155,000. The terms of the loan also include a four percent origination fee which is to be paid at closing and a 6 month, interest only note with a 12% rate of interest.

According to the parameters of the note, Juan will have to pay a $6,200 origination fee in addition to 50% of the purchase price, or $155,000, based on the 50% LTV. he must then pay $1,550 monthly to the lender. If Juan sells the house for $387,500 after 6 months, he would then earn a total profit of $62,000 after deducting the original principle of $155,000, the money paid at the close of $155,000, the origination points of $6,200, and the aggregate interest payments of $9,300. This gross profit does not include rehab costs.

Loan Example 2

Wade locates a house in Los Angeles, CA to rehab and re-sell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from Socotra Capital with the following parameters:

$160,000 sales price
70% loan-to-value (LTV)
18 month term
11% interest rate
5% origination fee

After the renovation project is completed, if Wade sells the house for $192,000, the outcome would be as follows:

$192,000 sales price
- $112,000 principle (70% LTV)
- $48,000 cash paid at closing (30% on 70% LTV)
- $5,600 origination fee (5% of the $112,000 principle)
- $18,480 interest payments (18 months x 11% interest)
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= $7,920 total profit (does not include taxes or rehab costs)

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