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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!
A total of 50 records for hard money bridge lenders were found in Massey, MD. The average amount loaned in this city is $284,375. Rates for private loans average about 12.0%. 16 months is the average length for loans issued in this city. The mean loan includes a 3.3 point origination charge. The average loan-to-value (LTV) for loans in Massey is 68%.
Kristi finds a property in Massey, MD to remodel and resell. Since she doesn't have enough cash on-hand to purchase the $340,000 house outright, she decides to take out a bridge loan from J & T Investment Group. The loan-to-value (LTV) on the note is 60%. This means Kristi will have to bring 40% of the sales price to the closing and the principle will be $204,000 on the note. The terms of the deal dictate a 13% note for 12 months. They also require a 2 point origination fee, which will also need to be paid at closing.
Accordingly, the borrower will be required to make a $136,000 down payment in addition to paying a $4,080 origination fee. The lender will collect $2,210 in monthly interest from the Kristi. This is computed by taking the full loan value of $204,000, multiplying by the 13% rate of interest, and then dividing that amount by 12. Assuming she sells the renovated house for $476,000 at the end of the 12 month term, her total profit (not including renovation expenses) would be $105,400. This is computed by taking the purchase price ($476,000) and subtracting the original principle ($204,000), the origination cost ($4,080), the funds she brought to closing ($136,000), and the total interest expenses ($26,520).
Roger takes out a hard money bridge loan from Prime Time Funding Company so he can remodel a house to flip in Massey, MD. The loan has the following parameters:
a) A $180,000 purchase price, b) a 85% loan to value (LTV), c) a 6 month term, d) a 13% interest rate, and e) a 5% origination fee.
If Roger achieves his goal of a $243,000 sales price, the final numbers of the deal would be as follows:
$243,000 sales price
- $153,000 principle (85% LTV)
- $27,000 cash paid at closing (15% on 85% LTV)
- $7,650 origination fee (5% of the $153,000 principle amount)
- $9,945 total interest paid (6 months x 13% interest)
-----------------------
= $45,405 gross profit (does not include taxes or renovation 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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