Why You Should Use Walnut Street Finance

  • Speed: your acquisition loan is reviewed and can be approved within 5 minutes and can close as quickly as 5 days
  • Minimal Up-front Capital Required: we finance 100% of your closing costs and points and set up an interest reserve so you’re not making interest payments for the first 6 months
  • Flexible Loan Amounts: we lend anywhere from $100K to $2.5 million
  • Easy: minimal paperwork and easy application process
  • Interest Reserves: we hold construction and interest reserves so you’re not making payments on your project for the first 6 months
  • Hands-on: with over 30 years of combined real estate experience, we’re not just lenders but can also help you throughout your project

Loan Amounts

$100,000 to $2,500,000

Interest Rates

10% to 12%

Max Loan-To-Value

75.00%

Max Loan-To-Cost

85.00%

Origination Fees

2% to 4%

Loan Terms

6 months to 24 months

Lien Position

  • 1st

Loan Purpose

  • Investment Acquisition
  • Investment Refinance
  • Improve Subject Property
  • Value Add Project
  • Development Project

Property Occupancy

  • Vacant

Property Geographic Area Details

DC, Virginia, Maryland, Delaware, Pennsylvania, North Carolina, South Carolina

Property Types and Loan Types

Collateral Types

  • Residential Property
  • Commercial Property

Property Types

  • 2-4 Units Residential
  • Assisted Living Facility
  • Bed and Breakfast
  • Commercial Condominium
  • Condominium
  • Hospital
  • Hotel
  • Industrial
  • Manufactured Home
  • Mixed-Use
  • Mobile Home
  • Mobile Home Park
  • Motel
  • Multifamily
  • Office
  • Portfolio of Residential Properties
  • Retail
  • Single Family Residence

Loan Types

  • Private Money
  • Hard Money
  • Commercial Bridge
  • Residential Bridge
  • Residential Fix and Flip
  • Residential Rehab and Rent
  • Commercial Ground-Up Construction
  • Residential Ground-Up Construction

Purchase Loan

Max Loan-To-Purchase Price

85.00%

Borrower Must Have Property Under Contract

no

Will Provide Proof of Funds Letter

yes

Will Consider Lending on Purchase from Auction

yes

Allowed Source of Borrower’s Equity

  • Own Cash
  • Partner
  • Equity in Another Investment Property
  • Family

Rehab Value Add Loan

Experience Required

no

Minimum Number of Value-Add Projects Completed by Borrower

0

Will Provide Funds for Renovation Costs

yes

Max LTC for Renovation Costs

100.00%

Interest Charged for Renovation Costs

Entire Amount of Total Project Costs

Typical Number of Days for Funds Draw

5

Construction Loan

Development Experience Required

no

Minimum Number of Ground-Up Construction Projects Completed by Borrower

0

Max LTC for Ground-Up Construction Costs

100.00%

Interest Charged for Construction Costs

Entire Amount of Total Project Costs

Will Lend on Partially Completed Construction Projects

yes

Details and Requirements

Typical Closing Time (Days)

5

Fastest Closing Time (Days)

3

Works With

  • Brokers
  • Borrowers

Payment Structure

  • Interest Only

Pre Payment Penalty

no

Will lend to a foreign national

no

Will Allow Junior Position Mortgage(s) Behind Our Senior Mortgage

no

Will Consider Collateralizing Multiple Properties in One Loan

no

Will Consider Equity Joint Venture

no

Borrower Entity Types Considered

  • LLC

Documentation Required

  • Financial Statements
  • Loan Application

Personal Guaranty (Recourse) Required

Sometimes

Credit Check Required

yes

Minimum Credit Score Required

600

Appraisal Required for Residential Property

Always After Funding

Appraisal Required for Commercial Property

Always After Funding

Broker Price Opinion (BPO) Accepted for Residential Property

Never

Broker Price Opinion (BPO) Accepted for Commercial Property

Never

Fees

Deposit Required

$1,000.00 to $2,500.00

Commitment fee ranges from $1,000 to $2,500 depending on the loan amount.

Legal Fee

Fees which are mandatory for all new borrower clients

  • Deposit
  • Legal Fee
  • Appraisal Fee
  • Inspection Fee
  • Title Fee
  • Credit Report Fee

Fees which are charged upfront prior to loan closing

  • Deposit

Fees which are paid to a third party company

  • Appraisal Fee
  • Title Fee

Walnut Street was founded in 1997 by Bobby Montagne, Jr. as a private real estate development company focused on well-located, infill sites in and around Washington, DC. Walnut Street’s business model included acquiring, zoning, and building residential and commercial projects in “A” locations. After decades of success in residential and commercial property development, finance, and sales, Walnut Street transitioned into a private hard money loan lender by founding Walnut Street Finance.

Because Walnut Street was a builder before becoming a private hard money loan lender, we have a special appreciation for our clients. Having “dirtied our boots” developing thousands of residential units and commercial properties during that span, we understand the needs of builders and developers. Well-rooted in the industry, we approach each loan and client as we would a partner: first identifying the capital needs and then delivering the right solution.

Walnut Street Finance provides short-term (6-24 month) commercial loans to small and mid-sized independent real estate builders, developers and investors in Washington, DC, Virginia, Maryland, Delaware, North Carolina, South Carolina, and Pennsylvania.

We eliminate the stress of project financing with a refreshing approach to serving the entrepreneurial builder and developer by providing easy online loan applications; fast and flexible financing without the red tape; competitive rates, fees & terms; and loans serviced by our local company. No other private hard money loan lender knows the market like Walnut Street Finance, and we want to earn your business by getting to know you and your project.

Established

1997

Associations

  • American Association of Private Lenders - Member

Office Locations

4021 University Drive, Fairfax, Virginia, 22030

Primary Capital Source

  • Own Funds
  • Debt Fund We Manage

Alternative Capital Sources

  • Individual Investors
  • Bank Credit Line
  • Private Equity Funds

Loan Structure for Majority of Loans

  • Own Balance Sheet

Alternative Loan Structures

  • One Investor One Loan

Percentage of company’s lending business focused on private mortgage

100%

Percentage of Loans Secured by Commercial Property

10%

Percentage of Loans Secured by Residential Property

90%

Percentage of Residential Property Loans Which are Fix and Flip

90%

Percentage of Residential Property Loans Which are Buy and Hold

10%

Percentage of Residential Property Loans Which are Owner-Occupied

0%

Percentage of Loans Secured by Land

0%

Percentage of Loans Secured by a Business (not real estate)

0%

Percentage of Commercial Property Loans Which are Ground-Up Construction

0%

Percentage of Residential Property Loans Which are Ground-Up Construction

0%

Percentage of Residential Property Loans Which are Long-Term Rental (5+ years)

0%

Bobby Montagne

CEO

Bobby Montagne is a real estate entrepreneur with three decades of experience in commercial and residential property development, finance and sales. Having successfully overseen billions in career transactions, he is among an elite class of private real estate lenders that has consistently delivered high-quality returns to partners and investors. A native of Fairfax, VA, Bobby earned a Bachelor of Science degree in Economics with Honors from George Mason University and a Master of Business Administration from Virginia Tech. Soon after college graduation, he joined the Resolution Trust Corporation as an Asset Marketing Specialist where he was active in the sale of over $14 billion in real estate during the S&L crisis of the 1980’s, gaining invaluable experience in finance and asset valuation. In 1994, Bobby joined Sunrise Senior Living as a Development Officer. He successfully delivered over $250 million in senior housing throughout the mid-Atlantic and southeast and was active in the company’s 1996 initial public offering. In 1997, Bobby Montagne formed Walnut Street as an independent real estate development firm with a goal of $1 million in revenues the following year. He achieved that goal on his first two projects and by 2005 was generating $250 million in revenue. Through partnerships with The Carlyle Group private equity firm, New York investment bank Lehman Brothers and international real estate company Trammell Crow, Bobby delivered over 1,200 residential units and 200,000 square feet of commercial property valued at over $600 million. Between 2010 and 2015 Bobby Montagne was the principal owner of WSD Capital, a real estate development firm that renovated and resold 185 classic row houses in emerging Washington, DC neighborhoods, generating $150 million in revenue. Decades of financing and construction expertise have enabled Bobby to create a risk-mitigated lending and project development business model that has been successfully deployed in hundreds of deals.

Katia Potapov

Director of Operations

Katia Potapov serves as the Director of Operations for Walnut Street Finance. She has over 16 years of operational and project management experience in various industries, including real estate and construction, media and entertainment, industry associations, and government agencies. Through her extensive experience, Katia has mastered business strategy development and process improvements within an organization. Highlights in her career include the management of over 150 design, construction, and engineering projects in major hotels and casinos to include Tropicana, Borgata, Trump Casinos and, the Saratoga Racetrack. In addition, Katia has fixed and flipped properties for her own portfolio. Katia also directs and oversees Walnut Street Finance’s investor relations function and serves as the primary point of contact for all private investors, credit facilities and secondary market partners. In addition to creating financial pipeline reports, she captures and presents investor feedback to the Executive Committee and builds relationships with potential stakeholders for future financing at favorable terms. She holds a Bachelor’s degree from the State University of New York and is fluent in Russian and conversant in Spanish and French.

Chip Sher

Development Officer

Charles “Chip” Sher serves as Development Officer at Walnut Street Finance. He works directly and daily with borrowers and prospective borrowers, structuring and closing real estate loans. Mr. Sher’s vast experience dealing with borrowers provides Walnut Street Finance with a strategic advantage in attracting and closing real estate loans. Prior to joining Walnut Street Finance, Mr. Sher founded a real estate consulting and management company, Sher Equity Resources, Ltd., that was designed to oversee privately funded development and construction projects throughout the Southeastern United States. He worked with engineers, contractors, vendors, and real estate professionals throughout all phases of the development processes. Sher Equity Resources also developed strategies to maximize value on assets that were impacted by the credit crisis. At one point, Mr. Sher had 25 projects under management worth an aggregate value of $180 million. From 1993-2000, Mr. Sher founded and ran a boutique mortgage brokerage, CJS Mortgage Services, specifically tailored to the placement of private mortgage investments. He developed a reliable channel of investment sources and built a business sourcing and managing projects on behalf of investors. The average project size was $500,000, and CJS Mortgage Services averaged $15 million in annual loan volume. Mr. Sher holds a Bachelor of Science degree from James Madison University.

Melissa Lynch

Portfolio Manager

As the Portfolio Manager at Walnut Street Finance, Melissa performs comparative market analysis and risk assessment as well as due diligence and closing logistics for the loan origination team. In addition, she manages the strategy, design, and implementation of public relations efforts to stakeholders and media in order to build brand awareness as well as develop and maintain a strong client base. Ms. Lynch has more than 12 years of operational, communications and project management experience in the real estate and construction industries with 8 additional years of experience managing large-scale projects and campaigns for corporate and government clients. Ms. Lynch graduated cum laude from North Carolina State University School of Design and holds a Bachelor of Arts degree in Environmental Design.

Chris Malo

Development Officer

Chris Malo serves as Development Officer at Walnut Street Finance. Chris is responsible for working directly with real estate investors and prospective borrowers, structuring financing solutions for their real estate projects. Chris’s area of expertise extends south of the I495 beltway from Fredericksburg, VA down to South Carolina, including the metropolitan areas of Richmond, Hampton Roads, Norfolk, Virginia Beach, Charlotte, and Raleigh-Durham. Prior to joining Walnut Street Finance, Chris founded multiple startups in both the tech sector as well as real estate, raising over 8 million in capital. Chris founded a development company in Richmond, VA that constructed multiple single-family, multi-family, and mixed-use properties across central Virginia. He has personally managed all phases of real estate projects from sourcing, financing, construction, and operations. He can lend his years of experience to many real estate investors needing guidance and mentorship from small to large projects.

Anthony "Tony" Zezzo

Development Officer

Tony brings over 22 years of real estate and mortgage experience to the Walnut Street Finance team. He is responsible for growing the origination business with a specific focus on providing financing to mid-sized independent builders and developers in the Washington, DC Metropolitan area, and Baltimore, MD area as well as future expansion markets. Tony’s background includes a broad spectrum of multi-dimensional experience spanning the real estate and mortgage finance world, from “Wall Street to Main Street”. His prior experience consists of various positions focused on originating, underwriting, and overseeing real estate and mortgage investments in advisory and investment management roles, including significant experience in the investment banking, private equity, and hedge fund industries. Tony has been involved in financing a wide array of transaction types and sizes, including everything from small single-family home investments to large-scale commercial projects. Tony holds a Master’s degree from Columbia University and a Bachelor’s degree from the University of Maryland. In addition, he is a Certified Public Accountant (license currently inactive) licensed in the State of Maryland. Tony began his career in the real estate industry in 1986 in the building and construction trades.

Janet Lucas

Development Officer

Janet Lucas joins the Walnut Street Finance team as a Development Officer and brings a wide range of experience through her 25 years in the mortgage industry. Janet works directly with borrowers and prospective borrowers, configuring and closing real estate loans. Janet began her career as a Loan Processor for conventional mortgage loans which led to her becoming an underwriter for FHA, VA, and Conventional Residential Mortgages. In the late 90’s through early 2000’s, Janet managed a high-producing mortgage company in Virginia consisting of over 25 employees. Janet was tasked with originating new loans, handling compliance guidelines, and making sure the day-to-day operations ran smoothly to ensure all customer needs were met in a timely and professional manner. Janet has been in the private money industry since 2003, working with some of the area’s most successful investors throughout VA, MD, and DC. Janet is always striving to exceed customer expectations resulting in a very large percentage of repeat customer business.

Loan Request

Short Description of your Loan Request or Property Address

This information is about yourself, not the subject property.

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If Borrower is not seeking additional funds for the renovation, change the Loan Type to Purchase or Acquisition.

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how will the loan be paid off?

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