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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!
Medford, OR has 50 lenders operating within the city. In this city, the average note amount is $288,750. Rates for private loans average around 11.5%. The median term offered for loans is 19 months. The average note includes a 2.9 point origination fee. 74% is the median loan to value offered for for loans in Medford.
Jamie takes a hard money bridge loan from Prosper Investment Corporation in order to remodel a duplex to flip in Medford, OR. The list price of the property is $350,000. Because the lender agrees to a 50% loan to value, Jamie will have to put 50% down and the total amount of the note will be $175,000. The parameters of the loan dictate a 8% note for 18 months. They also stipulate a 1 point origination fee, which will also be paid upon closing.
The borrower will need to fund a total of $32,400 up front to cover the $175,000 down payment in addition to the $1,750 origination fee. The lender will collect $1,167 in monthly interest payments from the borrower. This is calculated by taking the full note value of $175,000, multiplying that by the 8% interest rate, and then dividing that amount by 12. At the end of the loan, he sells the renovated property for $507,500. After deducting the $21,000 in interest expenses ($1,167 times 18 months), the $1,750 origination fee, the $175,000 principle on the loan, and the $175,000 he contributed to the closing, he will earn a total profit of $134,750 ($507,500 price minus $372,750 in total costs). This profit would be reduced by any rehab costs paid out of pocket.
Leigh is a real estate investor in Medford, OR. She purchases a run-down townhouse for a rehab project and obtains a hard money bridge loan from Affluent Investment Corporation with the following features:
$390,000 sales price
65% loan to value (LTV)
12 month term
8% interest rate
1% origination fee
If Leigh accomplishes her goal of a $487,500 sales price, the outcome of the deal will be as follows:
$487,500 sales price
- $253,500 loan principle (65% LTV)
- $136,500 down payment (35% on 65% LTV)
- $2,535 origination fee (1% of the $253,500 principle)
- $20,280 interest payments (12 months x 8% interest)
-----------------------
= $74,685 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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