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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!
Pleasant Grove, UT has 42 private money bridge lenders offering loans in the city. The mean note amount is $391,945. Rates for hard money loans average around 9.7%. The typical length for notes is 16 months. The average origination fee for the loans is 2.8 points. Lenders typically offer a 76% loan to value on hard money loans in Pleasant Grove.
Roger is a real estate investor in Pleasant Grove, UT. He discovers a run-down property for sale and decides to rehab it and flip it for a profit. The house has a cost of $390,000 but he doesn't have the full amount so he takes a bridge loan with Famous Lending Corporation. The terms of the deal include a 65% loan to value (LTV), so he must bring 35% of the price as cash to closing, which makes the principle note amount $253,500. The rate on the note is 13% for a term of 12 months and the company requires a one point origination fee at the close. The interest is to be paid monthly and the principle amount will be repaid after the sale of the property.
The borrower will have to contribute a total of $32,400 upon closing to pay the $136,500 down payment plus the $2,535 origination fee. Famous Lending Corporation will collect $2,746 in monthly interest from the borrower. This is computed by taking the total note amount of $253,500, multiplying that by the 13% interest rate, and then dividing that amount by 12. If Roger accomplishes his goal of a $585,000 total sales price at the end of the loan term, he would earn a total profit of $159,510 after repaying the principle amount and subtracting the money he brought to closing, the origination points, and the total interest payments.
Bertha is a real estate investor in Pleasant Grove, UT. She purchases an older house for a remodeling project and obtains a private money bridge loan from Superior Investment Group with the following paramters:
$150,000 purchase price
75% loan-to-value (LTV)
12 month term
13% rate of interest
5% origination fee
Assuming a $202,500 sales price at the end of the 12 month term, the final numbers for the project would look like this:
$202,500 sales price
- $112,500 principle on note (75% LTV)
- $37,500 cash paid at closing (25% on 75% LTV)
- $5,625 origination points (5% of the $112,500 principle)
- $14,625 total interest paid (12 months x 13% interest)
-----------------------
= $32,250 gross profit (doesn't 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!
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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