The Lakewood Group

About The Lakewood Group

The Lakewood Group is a Fairfield, NJ based private money lender who provides funding throughout New Jersey. They provide rental property loans and short term fix and flip loans. They offer rates ranging between 10% and 12%, terms between 2 years and 3 years, and loans with a maximum LTV of 65%. They make loans on all the following types of properties: industrial buildings, office buildings, multi family, hotels, retail storefronts, and storage buildings.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans

Property Types Covered: Industrial, Office, Multi Family, Hotel, Retail, Storage

Areas Served: NJ

Lending Guidelines for The Lakewood Group

Below are the general loan guidelines published on the The Lakewood Group 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 Lakewood Group.

Loan Example 1

Ricky finds a condo in Newark, NJ to rehab and re-sell. Since he does not have enough cash to acquire the $360,000 project outright, he takes out a private money loan from The Lakewood Group. The borrower will need to bring 15% of the sales price in cash to the closing based on a 85% loan to value set by the lending company. This makes the principle amount from The Lakewood Group $306,000. The rate on the note is 13% for a length of 6 months and the company requires a one point origination fee at the closing. The interest is to be paid on a monthly basis and the principle amount will be repaid after the sale of the property.

The borrower must fund a total of $32,400 up front to pay the $54,000 down payment in addition to the $3,060 origination fee. The monthly interest only payments will then total $3,315 to the lender. At the end of the loan, he sells the rehabed property for $468,000. After subtracting the $19,890 in total interest payments ($3,315 multiplied by 6 months), the $3,060 origination fee, the $306,000 principle on the loan, and the $54,000 he contributed to the closing, he will earn a gross profit of $85,050 ($468,000 price minus $382,950 in total costs). This amount would be reduced by any renovation costs paid out of pocket.

Loan Example 2

The Lakewood Group issues a hard money loan to Bill for a renovation project in Newark, NJ. The loan dictates the following:

a) A $310,000 sales price, b) a 75% loan to value (LTV), c) a 12 month term, d) a 13% interest rate, and e) a 2% origination fee.

Once the rehab project is finished, if Bill sells the project for $372,000, the final numbers would be as follows:

$372,000 sales price
- $232,500 loan principle (75% LTV)
- $77,500 cash paid at closing (25% on 75% LTV)
- $4,650 origination points (2% of the $232,500 principle)
- $30,225 total interest paid (12 months x 13% interest)
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= $27,125 gross profit (doesn't include taxes or renovation costs)

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