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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!
Hyrum, UT has 39 bridge lenders operating within the city. The average amount for loans is $361,072. Interest rates on loans issued to Hyrum borrowers average around 11.0%. The typical loan issued in this city has a length of 15 months. The average note includes a 3.0 point origination fee. Lenders in Hyrum average a 72% loan-to-value (LTV) on their deals.
Jessica is a house flipper in Hyrum, UT. She finds a run-down property for sale and wants to remodel it and sell it for a profit. The house has a cost of $400,000 but she doesn't have the full amount so she takes out a hard money bridge loan with Forest Grove Finance Company. The terms of the deal include a 65% loan-to-value (LTV), so she must contribute 35% of the price as cash to closing, making the principle note amount $260,000. The terms of the deal also include a one percent origination fee which will be paid at the closing and a 12 month, interest-only note with a 12% interest rate.
Jessica will have to contribute a total of $32,400 up front to cover the $140,000 down payment plus the $2,600 origination fee. After the loan closes, she will need to pay Forest Grove Finance Company $2,600 in monthly interest payments, or 12% multiplied times $260,000 divided by 12 months in the year. If she sells the renovated house for $500,000 at the end of the 12 month term, her gross profit (not including remodeling costs) would be $66,200. This is computed by taking the sales price ($500,000) and subtracting the original note amount ($260,000), the origination cost ($2,600), the funds she contributed to closing ($140,000), and the total interest expenses ($31,200).
Superior Finance Company issues a bridge loan to Christopher for a remodeling project in Hyrum, UT. The deal includes the following:
$200,000 sales price
85% loan to value (LTV)
18 month term
14% interest rate
3% origination fee
Christopher plans to sell the property when the note expires for $290,000. If he succeeds, the deal numbers would be the following:
$290,000 sales price
- $170,000 loan principle (85% LTV)
- $30,000 down payment (15% on 85% LTV)
- $5,100 origination points (3% of the $170,000 principle)
- $35,700 interest payments (18 months x 14% interest)
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= $49,200 gross 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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