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The ORIGINAL LENDER of NOT requiring any of the below: NO Application, tax returns, credit check, appraisals, pre-inspection, prepay penalty, upfront fees, survey, bank statements or employment!
Cypress, TX has 50 private money bridge lenders serving the city. Note amounts average about $299,063. Interest rates on hard money loans issued to Cypress borrowers average 11.1%. The average length offered for loans is 24 months. The mean origination for the loans is 3.5 points. Lenders in Cypress average a 80% loan to value on their loans.
Eric finds a house in the Willowbrook subdivision of Cypress, TX to flip and resell. Since he does not have enough cash available to purchase the $380,000 house outright, he decides to take out a hard money bridge loan from East End Lending. The loan to value (LTV) on the deal is 55%. This means Eric will bring 45% of the sales price to closing and the principle will be $209,000 on the deal. The rate on the loan is 9% for a length of 18 months and the lender requires a four point origination fee at closing. The interest payments are to be paid on a monthly basis and the principle will be paid back after the sale of the property.
Eric will need to bring a total of $32,400 up front to pay the $171,000 down payment plus the $8,360 origination fee. East End Lending will collect $1,568 in monthly interest from the borrower. This is computed by taking the full loan value of $209,000, multiplying by the 9% rate of interest, and then dividing that amount by 12. If Eric accomplishes his goal of a $494,000 total sales price when the loan term expires, he would earn a gross profit of $77,425 after re-paying the principle amount and deducting the cash he brought to closing, the origination fee, and the monthly interest payments.
GJ Lending Corporation issues a private money bridge loan to Jeffery for a rehab project in the Willowbrook neighborhood of Cypress, TX. The deal includes the following:
$290,000 sales price
65% loan-to-value (LTV)
18 month term
10% rate of interest
4% origination fee
If Jeffery accomplishes his goal of a $406,000 sales price, the numbers of the deal will be the following:
$406,000 sales price
- $188,500 principle (65% LTV)
- $101,500 cash paid at closing (35% on 65% LTV)
- $7,540 origination fee (4% of the $188,500 principle)
- $28,275 total interest paid (18 months x 10% interest)
-----------------------
= $80,185 total profit (doesn't include taxes or rehab costs)
The ORIGINAL LENDER of NOT requiring any of the below: NO Application, tax returns, credit check, appraisals, pre-inspection, prepay penalty, upfront fees, survey, bank statements or employment!
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!
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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The ORIGINAL LENDER of NOT requiring any of the below: - NO Application - NO Tax Returns- NO Credit Check - NO Appraisals - NO Pre-Inspection - NO Prepay Penalty - NO Upfront Fee - NO Survey - NO Bank ...
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