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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!
Salina, KS has 39 hard money bridge lenders in the city. The average note amount is $301,563. Interest rates for hard money loans average 10.3%. The mean term offered for loans is 21 months. The average points added to the loans is 2.8%. Lenders offer on average a 72% loan to value (LTV) on loans in Salina.
Charlene is a real estate investor in Salina, KS. She locates a run-down property and decides to remodel it and flip it for a profit. The house costs $400,000 but she does not have the full amount so she obtains a private money bridge loan with Ocean View Investments. The terms of the loan include a 75% loan to value (LTV), so she must bring 25% of the price as cash at closing, making the principle note amount $300,000. The interest rate on the loan is 11% for a length of 18 months and the lender requires a three point origination fee at closing. The interest payments are to be paid on a monthly basis and the principle amount will be paid back after the property sells.
Charlene will have to bring $100,000 to the closing (25% on the 75% loan to value), plus she will pay the $9,000 origination fee. The lender will collect $2,750 in monthly interest payments from the borrower. This is calculated by taking the full loan amount of $300,000, multiplying by the 11% interest rate, and then dividing that amount by 12. Charlene's intention is to complete the remodel within the 18 months and sell it for $560,000. If she succeeds she will earn a profit of $101,500 ($560,000 sales price - $300,000 principle - $100,000 cash at closing - $9,000 origination points - $49,500 in interest.
Axis Finance makes a hard money bridge loan to Gordon for a remodeling project in Salina, KS. The loan dictates the following:
$250,000 purchase price
65% loan to value (LTV)
12 month term
10% rate of interest
5% origination fee
Based on a $300,000 sales price after the 12 month term, the numbers for this deal would look like the following:
$300,000 sales price
- $162,500 note principle (65% LTV)
- $87,500 down payment (35% on 65% LTV)
- $8,125 origination points (5% of the $162,500 principle)
- $16,250 interest payments (12 months x 10% interest)
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= $25,625 gross profit (does not 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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