Wallace Capital

About Wallace Capital

Wallace Capital is private lender headquartered in Boston, MA. They offer funding in Massachusetts, New Hampshire, Connecticut, Vermont, Rhode Island, and Maine. They provide lending solutions for a variety of situations and needs, including commercial loans, hard money bridge loans, and fix and flip hard money loans. They offer terms between 3 months and 24 months, rates ranging between 10% and 15%, and loan amounts ranging from $200,000 to $20,000,000 with a maximum LTV of 75%. They make loans on numerous property types, including single family homes, multi family, apartment buildings, offices, retail storefronts, hotels and motels, storage facilities, senior communities, mixed use buildings, warehouses, industrial facilities, medical buildings, and undeveloped land.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, Bridge Loans

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

Areas Served: MA, NH, CT, VT, RI, ME

Lending Guidelines for Wallace Capital

Below are the general loan guidelines published on the Wallace Capital 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 Wallace Capital.

Loan Example 1

Don is a real estate investor in Boston, MA. He discovers a run-down property for sale and wants to renovate it and sell it for a profit. The property costs $220,000 but he does not have the full amount so he takes a hard money loan with Wallace Capital. The borrower will be required to fund 40% of the sales price in cash to closing based on a 60% loan to value set by the lending company. This makes the principle note from Wallace Capital $132,000. The parameters of the deal dictate a 9% note for 18 months. They also stipulate a 4 point origination fee, which will also have to be paid when the property closes.

In addition to paying the $5,280 origination fee, Don will also have to fund $88,000 of the purchase with his own cash, or 40% of the sales price. Once the loan closes, he will pay Wallace Capital $990 in monthly interest fees, or 9% multiplied by $132,000 divided by 12 months in a year. At the expiration of the note, he sells the renovated property for $308,000. After subtracting the $17,820 in interest expenses ($990 multiplied by 18 months), the $5,280 origination fee, the $132,000 principle on the note, and the $88,000 he brought to closing, he will make a gross profit of $64,900 ($308,000 price minus $243,100 in total costs). This profit would be reduced by any rehab costs paid by Don.

Loan Example 2

Wallace Capital makes a fix and flip loan to Lawrence for a remodeling project in Boston, MA. The loan dictates the following:

$210,000 sales price
50% loan-to-value (LTV)
12 month term
12% interest rate
5% origination fee

Assuming a $315,000 sales price at the end of the 12 month term, the final numbers for the deal would look like this:

$315,000 sales price
- $105,000 note principle (50% LTV)
- $105,000 down payment (50% on 50% LTV)
- $5,250 origination fee (5% of the $105,000 principle amount)
- $12,600 total interest paid (12 months x 12% interest)
-----------------------
= $87,150 gross profit (does not include taxes or rehab costs)

No Reviews Yet

Wallace Capital currently has no reviews. To add a review now, click the link below:

Write a Review for Wallace Capital