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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!
Ridgewood, NY has 50 lenders operating within the city. The average note issued is approximately $553,000. The average rate for private loans in Ridgewood is 10.1%. The median loan issued in this city has a length of 18 months. The average origination for loans is 2.2 points. Lenders offer on average a 72% loan to value on hard money loans in Ridgewood.
Dimension Investment Company makes a private money bridge loan to Eleanor for a rehab project in the Ridgewood area of Ridgewood, NY, on a property that is listed for $290,000. Because the lender agrees to a 80% loan-to-value, Eleanor will have to put 20% down and the amount of the note will be $232,000. The deal also consists of these features: 1) a 6 month term, 2) a 14% interest-only note, and 3) a four point origination charge.
Eleanor will have to contribute $58,000 at closing (20% on the 80% loan to value), plus she will need to pay the $9,280 origination fee. Dimension Investment Company will collect $2,707 in monthly interest payments from the Eleanor. This is computed by taking the total note value of $232,000, multiplying that by the 14% interest rate, and then dividing that amount by 12. At the expiration of the note, she sells the renovated property for $391,500. After subtracting the $16,240 in interest payments ($2,707 multiplied times 6 months), the $9,280 origination fee, the $232,000 principle on the note, and the $58,000 she contributed to closing, she will make a gross profit of $75,980 ($391,500 price minus $315,520 in total costs). This profit would then be reduced by any rehab costs paid by the borrow.
Cody is a real estate investor in the Ridgewood neighborhood of Ridgewood, NY. He buys a run-down property for a remodeling project and takes a hard money bridge loan from Boom Finance Corporation with the following paramters:
$250,000 sales price
85% loan-to-value (LTV)
18 month term
13% rate of interest
1% origination fee
If Cody achieves his goal of a $350,000 sales price, the numbers of the project will be the following:
$350,000 sales price
- $212,500 loan principle (85% LTV)
- $37,500 cash paid at closing (15% on 85% LTV)
- $2,125 origination points (1% of the $212,500 principle amount)
- $41,438 interest payments (18 months x 13% interest)
-----------------------
= $56,438 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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Park Place Finance is a nationwide, direct private lender, specializing in Fix and Flip, Bridge, and DSCR loans. With same day approvals and an average 3-5 day close time, Park Place Finance is the business partner you need to get ...
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