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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!
Nottingham, MD has 50 hard money bridge lenders offering loans in the city. In this city, the average loan amount is $291,667. Interest rates for hard money loans average around 11.4%. 16 months is the average term for notes issued in the city. The average loan includes a 3.3 point origination fee. 72% is the median loan-to-value (LTV) for offered by lenders in Nottingham.
Patrica finds a property in Nottingham, MD to rehab and re-sell. Since she doesn't have enough cash available to acquire the $370,000 property outright, she takes out a bridge loan from Sunrise Investments. The borrower will need to bring 20% of the sales price in cash to the closing based on a 80% loan to value set by the lender. This makes the loan principle from Sunrise Investments $296,000. The terms of the deal dictate a 12% note for 6 months. They also stipulate a 2 point origination fee, which will also have to be paid upon closing.
Accordingly, the borrower will need to make a $74,000 down payment in addition to paying a $5,920 origination fee. The monthly interest only payments will then total $2,960 to Sunrise Investments. At the end of the note, she sells the rehabed house for $518,000. After deducting the $17,760 in interest payments ($2,960 multiplied times 6 months), the $5,920 origination fee, the $296,000 principle amount on the note, and the $74,000 she brought to the closing, she will earn a gross profit of $124,320 ($518,000 sales price minus $393,680 in costs). This amount would be reduced by any building costs paid by Patrica.
Francis locates a townhouse in Nottingham, MD to rehab and sell. Because he does not have enough cash to buy the property outright, he takes a hard money bridge loan from North Side Finance Corporation with the following parameters:
$210,000 sales price
85% loan to value (LTV)
18 month term
9% interest rate
3% origination fee
If Francis achieves his goal of a $252,000 sales price, the final numbers of the project would be the following:
$252,000 sales price
- $178,500 loan principle (85% LTV)
- $31,500 cash paid at closing (15% on 85% LTV)
- $5,355 origination fee (3% of the $178,500 principle amount)
- $24,098 total interest paid (18 months x 9% interest)
-----------------------
= $12,548 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!
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
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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Sherman Bridge Lending is a hard money lender headquartered in Irving, TX.They current lend in the following states: AL, CA, CO, FL, GA, KS, KY, MD, MO, NJ, NC, OH, OK, PA, SC, TN, TX, VA, WI and the District ...
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