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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!
Milton, MA has 50 bridge lenders operating within the city. The mean amount for loans is $377,500. Rates for private loans average around 11.1%. The typical length for notes is 18 months. The average loan issued in this city includes a 3.2 point origination fee. 75% is the mean loan-to-value (LTV) for for loans in Milton.
Cordial Lending Group issues a hard money bridge loan to Janine for a renovation project in Milton, MA, on a property that costs $210,000. Since the lender sets a 50% loan to value, Janine will need to put 50% down so the total amount of the loan will be $105,000. The interest rate on the loan is 13% for a term of 18 months and the company requires a three point origination fee at the closing. The interest payments are to be paid on a monthly basis and the principle amount will be repaid after the sale of the property.
Accordingly, Janine will have to make a $105,000 down payment in addition to paying a $3,150 origination fee. Cordial Lending Group will collect $1,138 in monthly interest from the borrower. This is computed by taking the full loan value of $105,000, multiplying by the 13% rate of interest, and then dividing that amount by 12. If Janine sells the house for $262,500 after 18 months, she would then realize a gross profit of $28,875 after subtracting the principle of $105,000, the money paid at the close of $105,000, the origination points of $3,150, and the aggregate interest payments of $20,475. This amount does not account for renovation costs.
Sheryl is a real estate investor in Milton, MA. She purchases a run-down property for a renovation project and obtains a bridge loan from Uptown Investment Corporation with the following features:
$390,000 sales price
65% loan-to-value (LTV)
18 month term
11% interest rate
1% origination fee
Once the renovation project is completed, if Sheryl sells the property for $487,500, the numbers would be the following:
$487,500 sales price
- $253,500 note principle (65% LTV)
- $136,500 down payment (35% on 65% LTV)
- $2,535 origination fee (1% of the $253,500 principle)
- $41,828 total interest paid (18 months x 11% interest)
-----------------------
= $53,138 total profit (does not include taxes or renovation 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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