The Loan Company

About The Loan Company

The Loan Company is a private money lender based in San Diego, California. Their focus is on real estate financing for borrowers and mortgage brokers for amounts ranging between $150,000 and $3,000,000 throughout San Diego County and surrounding areas. They can lend funds on all income property types, including mixed use commercial properties, residential properties, and special use properties.

Loan Types Offered: Hard Money Loans, Investment Property Loans, Commercial Hard Money Loans

Property Types Covered: Single Family, Multi Family, Apartment, Office, Retail, Hotel, Storage, Assisted Living, Mixed Use, Warehouse, Industrial, Medical, Church, Land

Areas Served: San Diego County

Licenses: CA DRE Broker License #01376920, NMLS ID #345838, CA DBO CFL License #60DBO 73986

Lending Guidelines for The Loan Company

Below are the general loan guidelines published on the The Loan Company 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 Loan Company.

Loan Example 1

Jack is a real estate investor in San Diego, CA. He locates a run-down property and decides to rehab it and resell it for a profit. The house costs $240,000 but he doesn't have the full amount so he obtains a private money loan with The Loan Company. The terms of the note include a 75% loan to value (LTV), so he must contribute 25% of the price as cash to closing, making the principle loan amount $180,000. The terms of the deal dictate a 13% note for 6 months. They also require a 5 point origination fee, which will also be paid upon closing.

By the parameters of the note, Jack will be required to contribute a $9,000 origination fee plus 25% of the purchase price, or $60,000, since there is a 75% LTV. he will then pay $1,950 monthly to The Loan Company. Assuming he sells the rehabed project for $312,000 at the end of the 6 month term, his gross profit (not accounting for rehab expenses) would be $51,300. This is computed by taking the purchase price ($312,000) and subtracting the original principle ($180,000), the origination cost ($9,000), the cash he brought to closing ($60,000), and the total interest payments ($11,700).

Loan Example 2

Silvia is a an investor in San Diego, CA. She finds an older house for a rehab project and takes out a hard money loan from The Loan Company with the following features:

a) A $280,000 sales price, b) a 65% loan to value (LTV), c) a 12 month term, d) a 10% interest rate, and e) a 1% origination fee.

Silvia plans to list the property at the end of the term for $406,000. If she succeeds, the outcome would be the following:

$406,000 sales price
- $182,000 loan principle (65% LTV)
- $98,000 cash paid at closing (35% on 65% LTV)
- $1,820 origination points (1% of the $182,000 principle)
- $18,200 total interest paid (12 months x 10% interest)
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= $105,980 total profit (doesn't include taxes or rehab costs)

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