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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!
A total of 50 records for hard money bridge lenders were found in Piscataway, NJ. In this city, the mean amount loaned is $553,000. The mean rate for private loans in Piscataway is 10.1%. 18 months is the mean term for notes issued in the city. The mean loan includes a 2.2 point origination cost. 72% is the typical loan to value for for loans in Piscataway.
Nathan finds a property in Piscataway, NJ to renovate and re-sell. Since he does not have enough cash on-hand to acquire the $180,000 house outright, he takes out a hard money bridge loan from West End Investment Company. The lender agrees to write a note with a 50% loan to value (LTV) so they are willing to extend $90,000 on the property. The interest rate on the note is 11% for a length of 6 months and the company requires a three point origination fee at the closing. The interest is to be paid on a monthly basis and the principle will be returned after the property sells.
In accordance with the parameters of the note, Nathan will need to pay a $2,700 origination fee plus 50% of the sales price, or $90,000, based on the 50% LTV. After the loan is closed and Nathan takes over the project, he will begin making payments each month of $825 to the lender ($90,000 principle x 11% / 12 months). If Nathan sells the project for $234,000 after 6 months, he would earn a total profit of $46,350 after subtracting the principle amount of $90,000, the money paid at the close of $90,000, the origination points of $2,700, and the aggregate interest payments of $4,950. This amount does not include remodeling costs.
Lesley is a an investor in Piscataway, NJ. She buys an older townhouse for a renovation project and obtains a hard money bridge loan from Cordial Funding with the following features:
$150,000 purchase price
55% loan to value (LTV)
18 month term
9% rate of interest
4% origination fee
Lesley plans to sell the house at the end of the term for $180,000. If she succeeds, the outcome would be the following:
$180,000 sales price
- $82,500 principle on note (55% LTV)
- $67,500 cash paid at closing (45% on 55% LTV)
- $3,300 origination points (4% of the $82,500 principle)
- $11,138 interest payments (18 months x 9% interest)
-----------------------
= $15,563 gross profit (doesn't 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!
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