Sterling Pacific

About Sterling Pacific

Sterling Pacific is private money lender based in Watsonville, CA. They offer funding in San Francisco. They offer fix and flip loans, long term rental property loans, private refinancing, bridge loans, private commercial loans, and ground-up construction loans. They issue terms between 1 year and 3 years, loan amounts ranging from $50,000 to $5,000,000 with a maximum LTV of 75%, and rates ranging between 8% and 12%. They provide loans on all the following property types: single family homes, multi-family units, apartments, offices, retail spaces, hotels, storage buildings, senior living communities, mixed use buildings, raw land, churches, warehouse buildings, 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: San Francisco

Lending Guidelines for Sterling Pacific

Below are the general loan guidelines published on the Sterling Pacific 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 Sterling Pacific.

Loan Example 1

Lela closes on a $250,000 renovation project in San Francisco, CA, using a fix and flip loan from Sterling Pacific. The loan-to-value (LTV) on the deal is 80%. This means Lela will bring 20% of the sales price to closing and the principle amount will be $200,000 on the loan. The rate on the note is 8% for a term of 6 months and the company requires a four point origination fee at closing. The interest payments are to be paid monthly and the principle will be repaid after the sale of the property.

In accordance with the parameters of the deal, Lela will be required to contribute a $8,000 origination fee in addition to 20% of the sales price, or $50,000, based on the 80% LTV. she will then pay $1,333 per month to the lender. If Lela sells the house for $350,000 after 6 months, she would make a gross profit of $84,000 after subtracting the principle amount of $200,000, the funds paid at closing of $50,000, the origination fee of $8,000, and the aggregate interest payments of $8,000. This gross profit does not account for building costs.

Loan Example 2

Sterling Pacific makes a hard money loan to Rosemary for a renovation project in San Francisco, CA. The loan includes the following:

$390,000 sales price
85% loan to value (LTV)
6 month term
13% rate of interest
4% origination fee

Once the rehab project is completed, if Rosemary sells the house for $487,500, the outcome would be as follows:

$487,500 sales price
- $331,500 note principle (85% LTV)
- $58,500 cash paid at closing (15% on 85% LTV)
- $13,260 origination fee (4% of the $331,500 principle)
- $21,548 interest payments (6 months x 13% interest)
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= $62,693 gross profit (doesn't include taxes or renovation costs)

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