South End Capital

About South End Capital

Headquartered in Encino, CA, South End Capital is a hard money lender offering funding all across the US. They offer loans for a variety of scenarios, including hard money refinancing and commercial hard money loans. They issue loan amounts ranging from $200,000 to $5,000,000 with a maximum LTV of 80%, rates starting at 6% , and terms between 1 year and 7 years. They make loans on the following types of properties: multi-family units, mixed use buildings, offices, retail units, and industrial facilities.

Loan Types Offered: Commercial Hard Money Loans, Refinance / Cash Out Loans

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

Areas Served: National

Lending Guidelines for South End Capital

Below are the general loan guidelines published on the South End 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 South End Capital.

Loan Example 1

Don owns a business in Fontana, CA and needs to purchase a new office space for his operations. Since he is unable to obtain a conforming loan from a bank, he looks to South End Capital for a commercial hard money loan. Since the borrower and lender agree to a 80% loan to value (LTV), Don will fund $74,000 at the closing and the loan principle will be $296,000 because the price of the new property is $370,000. The deal also specifies a 6 month length, a 9% interest rate, interest only payments paid each month with a balloon payment at the end of the note (without a pre-payment penalty), and a 1 percent origination fee. Don can eliminate the note at any point if he pays off the $296,000 in principle, but he will need to pay $2,220 monthly interest payments ($296,000 principle amount x 9% interest / 12 months per year) in the interim, or until the note expires. Since there isn't a pre-payment penalty, the only other expense he will have is the $2,960 origination charge which he will pay at the closing.

Loan Example 2

Lance is a an investor in Stockton, CA. He finds a run-down townhouse for a remodeling project and takes out a hard money loan from South End Capital with the following features:

a) A $300,000 sales price, b) a 85% loan-to-value (LTV), c) a 6 month term, d) a 10% interest rate, and e) a 4% origination fee.

Lance plans to list the project when the note expires for $420,000. If he succeeds, the outcome will be as follows:

$420,000 sales price
- $255,000 note principle (85% LTV)
- $45,000 cash paid at closing (15% on 85% LTV)
- $10,200 origination fee (4% of the $255,000 principle amount)
- $12,750 interest payments (6 months x 10% interest)
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= $97,050 gross profit (doesn't include taxes or rehab costs)

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