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About Vertical Prestige
Vertical Prestige is a hard money lender who provides loans throughout Chicago. They provide short term fix and flip loans and long term rental property loans. They offer rates ranging between 16% and 21%, loan amounts ranging from $50,000 to $150,000, and terms up to 6 months. The focus of their loans is for single family homes.
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Loan Types Offered: Investment Property Loans, Fix and Flip Loans
Property Types Covered: Single Family
Areas Served: Chicago
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Lending Guidelines for Vertical Prestige
Below are the general loan guidelines published on the Vertical Prestige website. Please confirm all terms and rates directly with the lender.
Investment Property Loans
Loan Amounts: $50,000 - $150,000
Available Rates: 16% - 21%
Typical Terms: 6 months
Points Charged: 4% - 6%
Max Loan-to-Value (LTV): N/A
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: YES
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: 5 - 10 DaysFix and Flip Loans
Loan Amounts: $50,000 - $150,000
Available Rates: 16% - 21%
Typical Terms: 6 months
Points Charged: 4% - 6%
Max Loan-to-Value (LTV): N/A
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: YES
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: 5 - 10 Days -
Loan Examples
The following loans are for education purposes only. They do not represent actual loans executed by Vertical Prestige.
Loan Example 1
Zachary takes a fix-and-flip loan from Vertical Prestige in order to remodel a house to flip in Chicago, IL. The sales price of the house is $220,000. The lender agrees to write a note with a 55% loan-to-value (LTV) so they are willing to loan $121,000 on the house. The loan is interest only, with monthly payments, and is for 6 months at 12% interest with 1 origination points to be paid when the deal closes.
On top of the $1,210 origination fee, Zachary will also fund $99,000 of the purchase with his own funds, or 45% of the purchase price. Once the deal is closed and Zachary takes over the property, he will have to begin making payments each month of $1,210 to Vertical Prestige ($121,000 principle x 12% / 12 months). Assuming he sells the rehabed house for $297,000 at the end of the 6 month term, his total profit (not accounting for rehab costs) would be $68,530. This is calculated by taking the sales price ($297,000) and subtracting the original principle ($121,000), the origination fee ($1,210), the money he contributed to closing ($99,000), and the total interest payments ($7,260).
Loan Example 2
Vertical Prestige makes a hard money loan to Tom for a rehab project in Chicago, IL. The loan includes the following:
a) A $220,000 sales price, b) a 60% loan-to-value (LTV), c) a 12 month term, d) a 10% interest rate, and e) a 3% origination fee.
Tom plans to list the property at the end of the term for $319,000. If he achieves this goal, the final numbers will be the following:
$319,000 sales price
- $132,000 note principle (60% LTV)
- $88,000 down payment (40% on 60% LTV)
- $3,960 origination points (3% of the $132,000 principle)
- $13,200 interest payments (12 months x 10% interest)
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= $81,840 total profit (does not include taxes or rehab costs) -
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