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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!
Hood, CA has 50 hard money bridge lenders serving the city. In this city, the mean loan amount is $310,938. Interest rates on hard money loans issued to Hood investors average about 11.2%. The typical note issued in the city is 48 months in length. The mean origination fee for loans is 3.4 points. Lenders offer on average a 74% loan to value on deals in Hood.
Summer closes on a $360,000 rehab project in the Meadowview neighborhood of Hood, CA, using a hard money bridge loan from Trust Funding Corporation. The borrower will be required to contribute 40% of the purchase price in cash to the closing based on a 60% loan to value set by the lender. This makes the principle note from Trust Funding Corporation $216,000. The loan also consists of these features: 1) a 6 month length, 2) a 9% interest only note, and 3) a two point origination charge.
According to the terms of the loan, Summer will be required to contribute a $4,320 origination fee in addition to 40% of the purchase price, or $144,000, since there is a 60% LTV. The monthly interest only payments will then be $1,620 to the lender. At the end of the note, she sells the rehabed house for $468,000. After subtracting the $9,720 in total interest payments ($1,620 multiplied times 6 months), the $4,320 origination fee, the $216,000 principle on the note, and the $144,000 she brought to the closing, she will make a total profit of $93,960 ($468,000 sales price minus $374,040 in total costs). This profit would be reduced by any rehab costs paid out of pocket.
Credence Finance issues a bridge loan to Ron for a remodeling project in the Meadowview area of Hood, CA. The loan includes the following:
a) A $300,000 sales price, b) a 85% loan to value (LTV), c) a 6 month term, d) a 10% interest rate, and e) a 3% origination fee.
Assuming a $450,000 sales price at the end of the 6 month term, the numbers for the project would look like this:
$450,000 sales price
- $255,000 note principle (85% LTV)
- $45,000 down payment (15% on 85% LTV)
- $7,650 origination points (3% of the $255,000 principle amount)
- $12,750 total interest paid (6 months x 10% interest)
-----------------------
= $129,600 gross 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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