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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!
Pomerene, AZ has 50 private money bridge lenders offering loans within the city. Note amounts average around $326,429. Interest rates on loans issued to Pomerene borrowers average around 10.2%. The mean term for notes is 50 months. The average origination fee for the loans is 3.1 percent. The mean LTV for loans in Pomerene is 70%.
Big Lake Investment Corporation issues a hard money bridge loan to Miguel for a renovation project in Pomerene, AZ, on a property that costs $370,000. The loan-to-value (LTV) on the note is 55%. This means that Miguel will need to bring 45% of the sales price to the closing and the principle will be $203,500 on the deal. The loan is interest-only, with monthly payments, and is for 6 months at 14% interest with 1 origination points paid when the deal closes.
Miguel will need to contribute $166,500 to closing (45% on the 55% loan to value), plus he will need to pay the $2,035 origination fee. The lender will collect $2,374 in monthly interest from the Miguel. This is calculated by taking the full loan amount of $203,500, multiplying that by the 14% rate of interest, and then dividing that number by 12. At the end of the note, he sells the rehabed property for $555,000. After deducting the $14,245 in interest payments ($2,374 multiplied by 6 months), the $2,035 origination fee, the $203,500 principle on the note, and the $166,500 he contributed to the closing, he will make a total profit of $168,720 ($555,000 price minus $386,280 in total costs). This profit would be reduced by any renovation costs paid out of pocket.
Alexandra is a an investor in Pomerene, AZ. She buys an older house for a renovation project and takes out a private money bridge loan from Downtown Finance Corporation with the following paramters:
a) A $380,000 purchase price, b) a 80% loan to value (LTV), c) a 18 month term, d) a 13% interest rate, and e) a 5% origination fee.
Alexandra intends to sell the house when the note expires for $494,000. If she accomplishes her goal, the outcome will be as follows:
$494,000 sales price
- $304,000 note principle (80% LTV)
- $76,000 cash paid at closing (20% on 80% LTV)
- $15,200 origination points (5% of the $304,000 principle amount)
- $59,280 total interest paid (18 months x 13% interest)
-----------------------
= $39,520 gross profit (does not include taxes or rehab costs)
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!
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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