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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!
There are 40 lenders serving Rose Hill, KS. The average note issued to borrowers is approximately $300,000. Interest rates for loans average about 10.5%. The average term for notes is 20 months. The average note includes a 2.9 point origination fee. Lenders typically offer a 73% loan to value on deals in Rose Hill.
Sonia takes a hard money bridge loan from South Side Funding Corporation in order to remodel a townhouse to flip in Rose Hill, KS. The list price of the house is $390,000. As the lender sets a 80% loan-to-value, Sonia will need to put 20% down so the total amount of the loan will be $312,000. The rate on the loan is 11% for a term of 12 months and the lender requires a one point origination fee at closing. The interest payments are to be paid monthly and the principle will be paid back after the property sells.
Sonia will have to contribute $78,000 to closing (20% on the 80% LTV), plus she will pay the $3,120 origination fee. Once the loan is closed and Sonia takes on the project, she will need to begin making payments each month of $2,860 to the lender ($312,000 principle x 11% / 12 months). At the end of the note, she sells the renovated house for $468,000. After subtracting the $34,320 in interest expenses ($2,860 times 12 months), the $3,120 origination fee, the $312,000 principle on the note, and the $78,000 she brought to closing, she will earn a total profit of $40,560 ($468,000 sales price minus $427,440 in total costs). This amount would be reduced by any renovation costs paid by Sonia.
Nell is a an investor in Rose Hill, KS. She locates an older house for a remodeling project and obtains a private money bridge loan from Success Finance Corporation with the following terms:
a) A $240,000 sales price, b) a 85% loan-to-value (LTV), c) a 12 month term, d) a 12% interest rate, and e) a 5% origination fee.
If Nell achieves her goal of a $360,000 sales price, the final numbers of the deal will be the following:
$360,000 sales price
- $204,000 principle on note (85% LTV)
- $36,000 cash paid at closing (15% on 85% LTV)
- $10,200 origination fee (5% of the $204,000 principle)
- $24,480 interest payments (12 months x 12% interest)
-----------------------
= $85,320 gross profit (doesn't 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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