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Nation’s fastest and easiest private real estate lender - Funding Fix and Flip, Ground-Up Construction, and DSCR. Closing as fast as 5 business days!
Cabin John, MD has 50 private money bridge lenders offering loans within the city. Note amounts average around $291,364. The average rate for private loans in Cabin John is 10.5%. The typical length for notes is 16 months. The average loan offered in the city carries a 3.5 point origination fee. The median loan to value for loans in Cabin John is 75%.
Tony is a house flipper in Cabin John, MD. He discovers an older property and wants to remodel it and flip it for a profit. The property costs $170,000 but he does not have the full amount so he obtains a bridge loan with Smith Finance Corporation. The terms of the deal include a 75% loan to value (LTV), so he must bring 25% of the price as cash to closing, making the principle loan amount $127,500. The interest rate on the note is 9% for a term of 6 months and the company requires a four point origination fee at closing. The interest is to be paid monthly and the principle amount will be repaid after the property sells.
Tony will have to bring $42,500 to closing (25% on the 75% LTV), plus he will pay the $5,100 origination fee. Once the deal is executed and Tony takes over the project, he will begin making monthly payments of $956 to Smith Finance Corporation ($127,500 principle x 9% / 12 months). If Tony meets his goal of a $212,500 sales price at the end of the loan term, he would pocket a total profit of $31,663 after re-paying the principle amount and deducting the money he brought to closing, the origination fee, and the total interest payments.
Dave finds a property in Cabin John, MD to renovate and re-sell. Since he does not have enough cash to buy the property outright, he takes a hard money bridge loan from West Star Investment Company with the following parameters:
a) A $340,000 purchase price, b) a 80% loan to value (LTV), c) a 6 month term, d) a 13% interest rate, and e) a 4% origination fee.
If Dave achieves his goal of a $408,000 sales price, the outcome of the deal would be as follows:
$408,000 sales price
- $272,000 principle on note (80% LTV)
- $68,000 down payment (20% on 80% LTV)
- $10,880 origination fee (4% of the $272,000 principle amount)
- $17,680 total interest paid (6 months x 13% interest)
-----------------------
= $39,440 total profit (doesn't include taxes or renovation costs)
Nation’s fastest and easiest private real estate lender - Funding Fix and Flip, Ground-Up Construction, and DSCR. Closing as fast as 5 business days!
Offering Fix and Flip, Bridge, and DSCR loans. With same day approvals, 3-5 day close time, and lending in 47 states, Park Place Finance will get your next deal funded fast!
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