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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!
Saint Ann, MO has 43 bridge lenders issuing loans in the city. In this city, the mean amount loaned is $298,611. Rates on hard money loans made to Saint Ann borrowers average about 10.9%. The average length offered for notes is 18 months. The mean origination percentage added to loans is 2.7%. Lenders in Saint Ann average a 75% loan to value (LTV) on their loans.
Therese is an investor in Saint Ann, MO. She finds an older property and decides to rehab it and flip it for a profit. The property costs $370,000 but she does not have the full amount so she takes out a bridge loan with Oceanside Finance Group. The lender agrees to make a loan with a 65% loan-to-value (LTV) so they will loan $240,500 on the project. The loan also includes the following features: 1) a 12 month length, 2) a 8% interest only note, and 3) a one percent origination charge.
Therese must fund a total of $32,400 up front to pay the $129,500 down payment plus the $2,405 origination fee. Once the loan is closed and Therese takes over the project, she will need to begin making payments each month of $1,603 to Oceanside Finance Group ($240,500 principle x 8% / 12 months). If Therese achieves her goal of a $518,000 sales price when the loan expires, she would collect a gross profit of $126,355 after re-paying the principle on the note and deducting the cash she contributed at closing, the origination fee, and the monthly interest payments.
Curtis locates a house in Saint Ann, MO to rehab and sell. Since he does not have enough cash to buy the property outright, he takes a bridge loan from Hometown Funding Corporation with the following parameters:
$330,000 purchase price
70% loan-to-value (LTV)
18 month term
11% rate of interest
2% origination fee
After the renovation project is completed, if Curtis sells the project for $429,000, the outcome would be as follows:
$429,000 sales price
- $231,000 principle on note (70% LTV)
- $99,000 cash paid at closing (30% on 70% LTV)
- $4,620 origination points (2% of the $231,000 principle)
- $38,115 interest payments (18 months x 11% interest)
-----------------------
= $56,265 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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