The Madison Group

About The Madison Group

The Madison Group is a Heber City, UT based hard money lender. They provide loans throughout the United States. They provide lending solutions for many different situations, including commercial loans and bridge loans. They provide loan amounts ranging from $500,000 to $50,000,000 with a maximum LTV of 65% and terms between 6 months and 5 years. They offer loans on the following types of properties: multi-family units, apartment buildings, office units, retail storefronts, hotels, storage facilities, senior housing facilities, mixed use buildings, warehouse spaces, industrial facilities, and medical offices.

Loan Types Offered: Commercial Hard Money Loans, Bridge Loans

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

Areas Served: National

Lending Guidelines for The Madison Group

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

Loan Example 1

Russell owns a small business in Washington DC, DC and needs to purchase a new office space for his operations. Because he cannot get a commercial mortgage from a bank, he looks to The Madison Group for a commercial hard money loan. Because the lender and borrower contract to a 60% loan-to-value (LTV), Russell will fund $160,000 at the close and the loan principle will be $240,000 since the list price of the new property is $400,000. In addition, the lender will collect a 2 percent origination fee in addition to the 13%, 12 month term on the deal. They agree to not enforce a pre-payment penalty if Russell pays off the note before it expires. By the parameters of this deal, Russell will pay an origination fee of $4,800 when the deal closes. He will also start making payments of $2,600 per month for the duration of the note and will pay off the principle at the end of the 12 month term. If he decides to pay back the note before, he may do so without an additional expense since there is no pre-payment penalty associated with the deal.

Loan Example 2

The Madison Group issues a bridge loan to Elisabeth for a rehab project in Syracuse, NY. The deal includes the following:

$280,000 purchase price
55% loan to value (LTV)
12 month term
13% rate of interest
3% origination fee

Once the renovation project is complete, if Elisabeth sells the property for $392,000, the outcome would be as follows:

$392,000 sales price
- $154,000 principle (55% LTV)
- $126,000 cash paid at closing (45% on 55% LTV)
- $4,620 origination fee (3% of the $154,000 principle amount)
- $20,020 total interest paid (12 months x 13% interest)
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= $87,360 total profit (doesn't include taxes or renovation costs)

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