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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!
Carlstadt, NJ has 50 lenders operating within the city. The median amount for loans in the city is $581,111. Rates on loans made to Carlstadt borrowers average 10.1%. The average length offered for loans is 18 months. The average origination fee charged for the loans is 2.2%. 72% is the average loan to value (LTV) offered for for loans in Carlstadt.
Winnie takes a bridge loan from ABC Funding in order to remodel a house to flip in Carlstadt, NJ. The price of the property is $360,000. The terms of the loan include a 80% loan to value (LTV), so she must bring 20% of the price as cash to closing, which makes the principle note amount $288,000. The note is interest only, with monthly payments, and is for 6 months at 8% interest with 5 origination points to be paid at the closing.
By the terms of the loan, Winnie will need to pay a $14,400 origination fee in addition to 20% of the sales price, or $72,000, based on the 80% LTV. The monthly interest only payments will then total $1,920 to the lender. At the end of the note, she sells the rehabed property for $450,000. After subtracting the $11,520 in total interest payments ($1,920 times 6 months), the $14,400 origination fee, the $288,000 principle on the note, and the $72,000 she brought to the closing, she will earn a gross profit of $64,080 ($450,000 price minus $385,920 in costs). This profit would be reduced by any renovation costs paid out of pocket.
Jeanne takes a hard money bridge loan from Reliance Finance Company in order to rehab a property to resell in Carlstadt, NJ. The deal has the following parameters:
a) A $210,000 sales price, b) a 75% loan-to-value (LTV), c) a 6 month term, d) a 12% interest rate, and e) a 2% origination fee.
Assuming a $304,500 sales price after the 6 month term, the final numbers for the deal would look like this:
$304,500 sales price
- $157,500 principle (75% LTV)
- $52,500 down payment (25% on 75% LTV)
- $3,150 origination fee (2% of the $157,500 principle)
- $9,450 total interest paid (6 months x 12% interest)
-----------------------
= $81,900 gross profit (does not include taxes or rehab costs)
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!
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
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!
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Park Place Finance is a nationwide, direct private lender, specializing in Fix and Flip, Bridge, and DSCR loans. With same day approvals and an average 3-5 day close time, Park Place Finance is the business partner you need to get ...
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