Walnut Street Finance

About Walnut Street Finance

Walnut Street Finance provides short-term (6-24 month) commercial loans to small and mid-sized independent real estate builders, developers and investors in Virginia, Maryland, Washington, DC, Delaware, North Carolina, South Carolina, and Pennsylvania.They require minimal upfront capital from their borrowers and finance 100% of the closing costs as well as set up an interest reserve so that no monthly payments are made for the first six to nine months of the project.They offer fast and flexible hard money loans on all of the following types of properties: multi-family, apartments, offices, retail spaces, mixed-use, and single-family units.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans, Refinance / Cash Out Loans, Bridge Loans, Hard Money Loans

Property Types Covered: Multi Family, Apartment, Office, Retail, Mixed Use, Single Family, Land

Areas Served: DC, MD, VA, DE, NC, SC, PA

Lending Guidelines for Walnut Street Finance

Below are the general loan guidelines published on the Walnut Street 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 Walnut Street Finance.

Loan Example 1

Corinne finds a condo in Baltimore, MD to renovate and re-sell. Since she does not have enough cash available to buy the $290,000 property outright, she takes out a fix and flip loan from Walnut Street Finance. The loan to value (LTV) on the deal is 80%. This means Corinne will need to bring 20% of the sales price to closing and the principle amount will be $232,000 on the deal. The terms of the deal also include a three percent origination fee that is to be paid at closing and a 18 month, interest only note with a 12% interest rate.

Corinne will need to contribute $58,000 at closing (20% on the 80% loan to value), plus she will pay the $6,960 origination fee. Once the deal is closed and Corinne takes on the project, she will need to begin making payments each month of $2,320 to the lender ($232,000 principle x 12% / 12 months). If Corinne sells the renovated house for $420,500 at the end of the 18 month term, her total profit (not including rehab expenses) would be $81,780. This is computed by taking the purchase price ($420,500) and subtracting the principle ($232,000), the origination fee ($6,960), the money she brought to closing ($58,000), and the total interest payments ($41,760).

Loan Example 2

Walnut Street Finance makes a fix and flip loan to Kate for a renovation project in Baltimore, MD. The loan dictates the following:

a) A $150,000 purchase price, b) a 70% loan to value (LTV), c) a 12 month term, d) a 10% interest rate, and e) a 1% origination fee.

After the renovation project is complete, if Kate sells the property for $217,500, the outcome would be as follows:

$217,500 sales price
- $105,000 loan principle (70% LTV)
- $45,000 cash paid at closing (30% on 70% LTV)
- $1,050 origination fee (1% of the $105,000 principle)
- $10,500 interest payments (12 months x 10% interest)
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= $55,950 gross profit (does not include taxes or rehab costs)