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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!
Fort Mill, SC has 50 hard money bridge lenders operating in the city. The median note amount in the city is $350,000. Interest rates on hard money loans issued to Fort Mill borrowers average about 10.8%. The median loan issued in the city is for 18 months. A typical hard money loan offered in the city carries a 2.8 point origination cost. Lenders in Fort Mill average a 75% loan to value on their deals.
Kenneth is an investor in Fort Mill, SC. He discovers an older property for sale and decides to renovate it and flip it for a profit. The property costs $370,000 but he doesn't have the full amount so he obtains a private money bridge loan with Oak Hill Lending Company. The terms of the deal include a 75% loan-to-value (LTV), so he must contribute 25% of the price as cash to closing, making the principle loan amount $277,500. The deal also includes these features: 1) a 12 month term, 2) a 11% interest only note, and 3) a one point origination fee.
By the terms of the deal, Kenneth will have to pay a $2,775 origination fee plus 25% of the sales price, or $92,500, since there is a 75% LTV. The monthly interest only payments will then total $2,544 to the lender. If Kenneth sells the property for $536,500 after 12 months, he would then make a gross profit of $133,200 after deducting the principle of $277,500, the cash contributed at closing of $92,500, the origination fee of $2,775, and the total interest payments of $30,525. This gross profit doesn't include remodeling costs.
Laura takes a private money bridge loan from Big City Finance Company in order to renovate a property to resell in Fort Mill, SC. The loan has the following terms:
a) A $150,000 purchase price, b) a 85% loan-to-value (LTV), c) a 6 month term, d) a 13% interest rate, and e) a 3% origination fee.
Based on a $210,000 sales price at the end of the 6 month term, the outcome for the deal would look like the following:
$210,000 sales price
- $127,500 note principle (85% LTV)
- $22,500 cash paid at closing (15% on 85% LTV)
- $3,825 origination fee (3% of the $127,500 principle amount)
- $8,288 total interest paid (6 months x 13% interest)
-----------------------
= $47,888 total 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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