Tidewater Investment Finance

About Tidewater Investment Finance

Headquartered in Virginia Beach, VA, Tidewater Investment Finance is a hard money lender providing funding throughout Virginia Beach. Their focus is primarily on fix and flip hard money loans. They issue rates ranging between 13% and 15% and loans with a maximum LTV of 70%. They will consider different lending scenarios but primarily focus on single family homes and multi-family.

Loan Types Offered: Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: Virginia Beach

Lending Guidelines for Tidewater Investment Finance

Below are the general loan guidelines published on the Tidewater Investment Finance 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 Tidewater Investment Finance.

Loan Example 1

Arnold is a house flipper in Virginia Beach, VA. He discovers an older property and wants to renovate it and sell it for a profit. The house costs $200,000 but he doesn't have the full amount so he takes out a fix-and-flip loan with Tidewater Investment Finance. The terms of the deal include a 80% loan to value (LTV), so he must contribute 20% of the price as cash at closing, which makes the principle note amount $160,000. The loan also has these features: 1) a 12 month length, 2) a 12% interest-only note, and 3) a four percent origination fee.

By the parameters of the deal, Arnold will need to pay a $6,400 origination fee plus 20% of the sales price, or $40,000, since there is a 80% LTV. Tidewater Investment Finance will collect $1,600 in monthly interest from the borrower. This is calculated by taking the full loan value of $160,000, multiplying by the 12% interest rate, and then dividing that amount by 12. If Arnold sells the property for $250,000 after 12 months, he would earn a total profit of $24,400 after deducting the principle of $160,000, the funds paid at closing of $40,000, the origination fee of $6,400, and the aggregate interest payments of $19,200. This profit doesn't include building costs.

Loan Example 2

Edna takes a private money loan from Tidewater Investment Finance so she can rehab a property to flip in Virginia Beach, VA. The loan has the following parameters:

$360,000 purchase price
60% loan-to-value (LTV)
18 month term
11% rate of interest
4% origination fee

If Edna succeeds in her goal of a $450,000 sales price, the numbers of the project will be as follows:

$450,000 sales price
- $216,000 note principle (60% LTV)
- $144,000 cash paid at closing (40% on 60% LTV)
- $8,640 origination fee (4% of the $216,000 principle)
- $35,640 interest payments (18 months x 11% interest)
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= $45,720 total profit (does not include taxes or renovation costs)

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