We Offer Creative Financing Solutions for Real Estate Investors
For Real Estate Investors interested in applying for a Worcester Financial Loan, please visit the Worcester Financial site at https://worcesterfinancial.com/
Director of Private Lending
Worcester Financial is an asset based, hard money lender offering our investors an
average return of 9% on their investment. Our loans are short term and generally do
not exceed 18 months. The loan is collateralized by real estate or a physical asset.
We generally lend up to 70% of the after renovated value of the collateral. Our team
underwrites the opportunities in-house and evaluates the risk based on borrower
history and market conditions. Upon approval from our underwriting group, we send the
opportunity to investors, allowing them to participate as a co-lender.
Worcester Financial acts as the Servicing Agent for all of our loans and ensures that
monthly payments are received from the borrower and sent directly to the investor’s
account. In the event of a default, Worcester Financial will manage the foreclosure and
collection of any losses on behalf of the Investor.
Worcester Financial is compensated by a combination of origination fees paid by the
borrower at closing as well as a monthly servicing fee. The monthly servicing fee helps
cover the cost of managing the loan portfolio and administrative expenses. The servicing
fee generally does not exceed 2% annually. For example, if the borrower is charged an
annual percentage rate of 11%, 9.5% is paid to the investor group and 1.5% is retained by
Worcester Financial as a servicing fee. Loan Servicing and management is a benefit to the
Investor but is always paid by the borrower.
We started Worcester Financial in 2016 after consulting with a lifelong investor and friend who successfully operated a private lending company.
He pointed out that our existing business model had about 80% of the infrastructure needed to run a successful private lending business. We already had an acquisition team and a growing property management company. Unlike traditional financing, we had all the tools needed to retain an asset and recover losses in the event of a default.
From the beginning, our philosophy has been to only lend on assets that we are comfortable owning. We have extensive experience within the Real Estate and lending industry and when faced with the worst case scenario, our team is equipped with the resources to not only take back the asset but also have the ability to complete the project and sell it.
Private lending is an excellent option for someone looking for passive income they can rely on monthly. Like any investment, there is still risk associated with these types of loans. If the borrower cannot repay the loan, we foreclose on the collateral and liquidate it.
Generally speaking, we have three different types of loans:
A bridge loan is typically used
when a borrower needs to secure
financing quickly. Bridge loans are
short term options for borrowers
who need time to obtain traditional
financing or sell an asset.
This is our most common loan
product. A borrower purchases
an asset at under market value,
makes improvements and sells
the rehabbed property for a profit.
BRRR is an acronym for Buy, Rehab,
Rent, Refinance. BRRR loans are
for well qualified borrowers who
plan to hold the real estate after
renovation. We finance the asset
as well as the rehab and then the
borrower refinances the property
through traditional financing once it
is rented and stabilized.
*Annualized interest calculated using a 30/360 basis. Interest earned may differ slightly