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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!
Gill, MA has 50 bridge lenders operating in the city. In this city, the average amount loaned is $309,167. Rates for loans average 12.0%. The mean loan issued in the city has a length of 17 months. The mean origination fee for the loans is 2.9 percent. The average loan-to-value (LTV) for loans in Gill is 71%.
Myrna takes a bridge loan from Presitge Investment Group in order to rehab a townhome to resale in Gill, MA. The price of the house is $320,000. The loan-to-value (LTV) on the note is 75%. This means Myrna will have to bring 25% of the sales price to closing and the principle will be $240,000 on the note. The rate on the note is 10% for a term of 18 months and the lender requires a two point origination fee at the close. The interest payments are to be paid on a monthly basis and the principle will be returned after the sale of the property.
In addition to paying the $4,800 origination fee, Myrna will also fund $80,000 of the purchase with her own cash, or 25% of the sales price. After the loan closes, she will pay the lender $2,000 in monthly interest fees, or 10% times $240,000 divided by 12 months in a year. At the end of the loan, she sells the rehabed house for $432,000. After deducting the $36,000 in interest expenses ($2,000 times 18 months), the $4,800 origination fee, the $240,000 principle on the loan, and the $80,000 she contributed to closing, she will earn a total profit of $71,200 ($432,000 sales price minus $360,800 in costs). This amount would then be reduced by any renovation costs paid by the borrow.
Bryan finds a townhouse in Gill, MA to renovate and re-sell. Because he does not have enough cash to buy the property outright, he takes a bridge loan from Top Notch Investment Group with the following parameters:
$300,000 sales price
80% loan-to-value (LTV)
12 month term
10% interest rate
2% origination fee
Bryan plans to list the project when the note expires for $405,000. If he accomplishes his goal, the outcome will be as follows:
$405,000 sales price
- $240,000 principle on note (80% LTV)
- $60,000 cash paid at closing (20% on 80% LTV)
- $4,800 origination points (2% of the $240,000 principle amount)
- $24,000 total interest paid (12 months x 10% interest)
-----------------------
= $76,200 gross profit (doesn't 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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