Washington Commercial Lending & Development

About Washington Commercial Lending & Development

Washington Commercial Lending & Development is an asset-based lender based in Springfield, VA providing loans in Washington DC. Their focus is primarily on short term fix and flip loans. They issue rates ranging between 12% and 18%. Their loan guidelines do not include a minimum FICO score. They primarily make loans on single family homes and multi family.

Loan Types Offered: Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: Washington DC

Lending Guidelines for Washington Commercial Lending & Development

Below are the general loan guidelines published on the Washington Commercial Lending & Development 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 Washington Commercial Lending & Development.

Loan Example 1

Nicholas closes on a $290,000 renovation project in Washington DC, DC, using a fix and flip loan from Washington Commercial Lending & Development. The terms of the note include a 55% loan-to-value (LTV), so he must bring 45% of the price as cash to closing, which makes the principle loan amount $159,500. The parameters of the note also include a three percent origination fee that will be paid at closing and a 6 month, interest only note with a 8% interest rate.

In addition to paying the $4,785 origination fee, Nicholas will also have to fund $130,500 of the purchase with his own funds, or 45% of the purchase price. he must then pay $1,063 per month to Washington Commercial Lending & Development. Nicholas's intention is to finish the renovation by the end of the 6 months and resell it for $406,000. If he succeeds he will earn a total profit of $104,835 ($406,000 price - $159,500 principle - $130,500 cash at closing - $4,785 origination fee - $6,380 in interest.

Loan Example 2

Washington Commercial Lending & Development issues a private money loan to Terry for a remodeling project in Washington DC, DC. The loan dictates the following:

a) A $250,000 sales price, b) a 65% loan to value (LTV), c) a 6 month term, d) a 10% interest rate, and e) a 4% origination fee.

Terry plans to sell the house at the end of the term for $375,000. If he accomplishes his goal, the outcome will be as follows:

$375,000 sales price
- $162,500 note principle (65% LTV)
- $87,500 down payment (35% on 65% LTV)
- $6,500 origination fee (4% of the $162,500 principle)
- $8,125 interest payments (6 months x 10% interest)
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= $110,375 total profit (doesn't include taxes or rehab costs)

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