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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!
Justice, IL has 50 hard money bridge lenders offering loans within the city. The mean loan made to borrowers is approximately $295,938. The mean interest rate for private loans in Justice is 10.8%. 17 months is the mean term for loans issued in the city. A typical hard money loan issued in the city carries a 3.0 percent origination fee. 74% is the typical loan to value offered for for loans in Justice.
George is a real estate investor in Justice, IL. He locates an older property and decides to renovate it and sell it for a profit. The house costs $200,000 but he does not have the full amount so he takes a private money bridge loan with South Star Finance Corporation. The terms of the loan include a 85% loan to value (LTV), so he must contribute 15% of the price as cash at closing, which makes the principle note amount $170,000. The loan also has the following features: 1) a 18 month term, 2) a 11% interest-only note, and 3) a three point origination fee.
According to the parameters of the loan, George will need to contribute a $5,100 origination fee plus 15% of the sales price, or $30,000, since there is a 85% LTV. After the loan closes, he will have to pay South Star Finance Corporation $1,558 in monthly interest payments, or 11% multiplied times $170,000 divided by 12 months in the year. Assuming George sells the remodeled project for $270,000 at the end of the 18 month term, his total profit (not accounting for remodeling expenses) would be $36,850. This is calculated by taking the sales price ($270,000) and subtracting the original principle ($170,000), the origination fee ($5,100), the cash he contributed to closing ($30,000), and the total interest payments ($28,050).
Chester finds a duplex in Justice, IL to rehab and re-sell. Because he does not have enough cash to buy the property outright, he takes a hard money bridge loan from Axis Lending Group with the following parameters:
$160,000 purchase price
85% loan-to-value (LTV)
12 month term
13% rate of interest
1% origination fee
Once the rehab project is complete, if Chester sells the house for $208,000, the numbers would be the following:
$208,000 sales price
- $136,000 note principle (85% LTV)
- $24,000 cash paid at closing (15% on 85% LTV)
- $1,360 origination fee (1% of the $136,000 principle)
- $17,680 total interest paid (12 months x 13% interest)
-----------------------
= $28,960 total 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!
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!
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
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Direct Lending Partners originates short-term real estate loans for the purpose of acquiring and renovating distressed residential real estate in the states of AL, CO, CT, DC, DE, FL, GA, ID, IL, IN, KS, KY, LA, MD, MO, NC, NE, ...
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Park Place Finance is a nationwide, direct private lender, specializing in Fix and Flip, Bridge, and DSCR loans. With same day approvals and an average 3-5 day close time, Park Place Finance is the business partner you need to get ...
Asset Avenue is private money lender based in Los Angeles, CA. They provide loans in 44 states across the United States. They provide loans for a variety of needs and situations, including short term loans, investment property ...
Gelt Financial LLC was founded in 1989 to help both borrowers and brokers finance their real estate. With loan amounts from $100K-$5M on vacant, non-owner occupied, and owner-occupied properties, Gelt Financial funds both purchases and refinances. Additionally, Gelt provides creative ...
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