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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!
Kirkwood, DE has 44 hard money bridge lenders serving the city. In this city, the median amount loaned is $352,000. The median rate for private loans in Kirkwood is 10.0%. The typical length offered for notes is 23 months. A typical loan offered in this city carries a 2.5 point origination charge. 71% is the median loan-to-value (LTV) offered for offered by lenders in Kirkwood.
Tameka is a house flipper in Kirkwood, DE. She finds an older property for sale and wants to rehab it and sell it for a profit. The property has a cost of $350,000 but she does not have the full amount so she takes a hard money bridge loan with Suburban Lending Corporation. The loan to value (LTV) on the deal is 65%. This means Tameka will have to bring 35% of the purchase price to the closing and the principle amount will be $227,500 on the loan. The terms of the loan dictate a 10% note for 6 months. They also require a 1 point origination fee, that will also be paid when the property closes.
Therefore, the borrower will be required to contribute a $122,500 down payment in addition to paying a $2,275 origination fee. Once the loan is executed and Tameka takes on the property, she will need to begin making monthly payments of $1,896 to the lender ($227,500 principle x 10% / 12 months). Assuming she sells the rehabed house for $507,500 at the end of the 6 month term, her gross profit (not accounting for renovation costs) would be $143,850. This is computed by taking the purchase price ($507,500) and subtracting the principle ($227,500), the origination fee ($2,275), the funds she brought to closing ($122,500), and the total interest payments ($11,375).
Chad is a real estate investor in Kirkwood, DE. He locates a run-down house for a renovation project and takes out a private money bridge loan from Coastal Lending Group with the following features:
a) A $380,000 sales price, b) a 85% loan to value (LTV), c) a 18 month term, d) a 11% interest rate, and e) a 2% origination fee.
Once the rehab project is finished, if Chad sells the property for $532,000, the outcome would be as follows:
$532,000 sales price
- $323,000 loan principle (85% LTV)
- $57,000 down payment (15% on 85% LTV)
- $6,460 origination fee (2% of the $323,000 principle)
- $53,295 total interest paid (18 months x 11% interest)
-----------------------
= $92,245 gross profit (doesn't 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!
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