The Grossman Companies

About The Grossman Companies

The Grossman Companies is a Quincy, MA based private lender offering loans throughout Massachusetts, Connecticut, Rhode Island, New Hampshire, and New York. They offer fix-and-flip hard money loans, short term bridge loans, hard money loans for commercial properties, and new construction loans. Their loan parameters are flexible, including terms between 6 months and 18 months, loan amounts ranging from $200,000 to $10,000,000 with a maximum LTV of 75%, and rates ranging between 12% and 14%. They offer loans on various property types, including single family homes, multi-family units, apartments, offices, retail storefronts, mixed use spaces, industrial buildings, medical facilities, and raw land.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Bridge Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Mixed Use, Industrial, Medical, Land

Areas Served: MA, CT, RI, NH, NY

Lending Guidelines for The Grossman Companies

Below are the general loan guidelines published on the The Grossman Companies 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 The Grossman Companies.

Loan Example 1

Helene is an investor in Brooklyn, NY. She locates a run-down property for sale and decides to rehab it and sell it for a profit. The property costs $230,000 but she doesn't have the full amount so she obtains a fix-and-flip loan with The Grossman Companies. The borrower will need to contribute 20% of the sales price in cash to closing based on a 80% loan to value stipulated by the lender. This makes the loan principle from The Grossman Companies $184,000. The parameters of the loan also stipulate a four point origination fee which will be paid at closing and a 18 month, interest only note with a 11% interest rate.

By the parameters of the note, Helene will need to contribute a $7,360 origination fee in addition to 20% of the sales price, or $46,000, since there is a 80% LTV. The Grossman Companies will collect $1,687 in monthly interest from the borrower. This is computed by taking the total note value of $184,000, multiplying that by the 11% interest rate, and then dividing that number by 12. Helene's plan is to finish the renovation by the end of the 18 months and re-sell it for $333,500. If she succeeds she will earn a total profit of $65,780 ($333,500 sales price - $184,000 principle amount - $46,000 funds brough to closing - $7,360 origination points - $30,360 in total interest.

Loan Example 2

Annette takes a hard money loan from The Grossman Companies in order to renovate a townhouse to resell in Brooklyn, NY. The deal has the following parameters:

a) A $300,000 purchase price, b) a 85% loan to value (LTV), c) a 18 month term, d) a 11% interest rate, and e) a 5% origination fee.

Once the rehab project is completed, if Annette sells the house for $360,000, the numbers would be as follows:

$360,000 sales price
- $255,000 loan principle (85% LTV)
- $45,000 down payment (15% on 85% LTV)
- $12,750 origination fee (5% of the $255,000 principle amount)
- $42,075 total interest paid (18 months x 11% interest)
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= $5,175 gross profit (doesn't include taxes or rehab costs)

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