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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!
Moose Pass, AK has 29 private money lenders issuing loans in the city. The mean note amount in this city is $287,500. Interest rates on loans issued to Moose Pass investors average about 11.2%. The typical loan issued in this city has a length of 20 months. The mean origination fee applied to the loans is 2.6%. The mean loan to value (LTV) offered for loans in Moose Pass is 73%.
Evelyn takes a hard money bridge loan from Fair View Funding in order to remodel a house to flip in Moose Pass, AK. The list price of the property is $220,000. The borrower will be required to contribute 30% of the purchase price in cash to the closing based on a 70% loan-to-value set by the lender. This makes the loan principle from Fair View Funding $154,000. The parameters of the loan dictate a 9% note for 12 months. They also stipulate a 1 point origination fee, that will also need to be paid at closing.
Therefore, Evelyn will need to make a $66,000 down payment in addition to paying a $1,540 origination fee. The monthly interest-only payments will then be $1,155 to Fair View Funding. At the expiration of the loan, she sells the rehabed property for $319,000. After deducting the $13,860 in total interest payments ($1,155 multiplied times 12 months), the $1,540 origination fee, the $154,000 principle amount on the loan, and the $66,000 she contributed to the closing, she will make a gross profit of $83,600 ($319,000 sales price minus $235,400 in total costs). This profit would then be reduced by any renovation costs paid by the borrow.
Gabriela finds a townhouse in Moose Pass, AK to remodel and resell. Because she does not have enough cash to buy the property outright, she takes a hard money bridge loan from Blue Mountain Lending Corporation with the following parameters:
$380,000 sales price
75% loan-to-value (LTV)
6 month term
11% interest rate
2% origination fee
Once the rehab project is complete, if Gabriela sells the property for $551,000, the outcome would be as follows:
$551,000 sales price
- $285,000 principle (75% LTV)
- $95,000 down payment (25% on 75% LTV)
- $5,700 origination points (2% of the $285,000 principle amount)
- $15,675 interest payments (6 months x 11% interest)
-----------------------
= $149,625 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!
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