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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!
Edwards, MO has 43 private money lenders issuing loans in the city. Loan amounts average approximately $299,643. The average interest rate for loans in Edwards is 11.2%. The typical length offered for loans is 16 months. The average loan offered in this city carries a 3.3 point origination charge. Lenders typically offer a 77% loan to value on hard money loans in Edwards.
Ericka is a house flipper in Edwards, MO. She finds a run-down property for sale and wants to rehab it and sell it for a profit. The property costs $180,000 but she doesn't have the full amount so she obtains a private money bridge loan with Dynamic Investments. The lender agrees to write a note with a 80% loan to value (LTV) so they are willing to loan $144,000 on the project. The interest rate on the note is 8% for a term of 6 months and the lender requires a five point origination fee at the closing. The interest is to be paid monthly and the principle amount will be paid back after the property sells.
The borrower will need to contribute a total of $32,400 upon closing to cover the $36,000 down payment plus the $7,200 origination fee. Once the loan closes, she will have to pay Dynamic Investments $960 in monthly interest payments, or 8% times $144,000 divided by 12 months in the year. If Ericka achieves her goal of a $225,000 sales price when the loan term expires, she would pocket a gross profit of $32,040 after re-paying the principle on the note and deducting the cash she contributed at closing, the origination fee, and the monthly interest payments.
Flossie locates a townhouse in Edwards, MO to renovate and sell. Since she does not have enough cash to buy the property outright, she takes a private money bridge loan from Number One Lending Company with the following parameters:
a) A $300,000 sales price, b) a 65% loan-to-value (LTV), c) a 6 month term, d) a 8% interest rate, and e) a 4% origination fee.
Based on a $390,000 sales price after the 6 month term, the numbers for this project would look like this:
$390,000 sales price
- $195,000 loan principle (65% LTV)
- $105,000 cash paid at closing (35% on 65% LTV)
- $7,800 origination fee (4% of the $195,000 principle)
- $7,800 interest payments (6 months x 8% interest)
-----------------------
= $74,400 total profit (does not include taxes or rehab 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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