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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!
Basking Ridge, NJ has 50 private money lenders serving the city. In this city, the average amount loaned is $581,111. Rates on hard money loans issued to Basking Ridge investors average 10.1%. The median note issued in the city has a term of 18 months. A typical loan offered in this city includes a 2.2 point origination cost. Lenders in Basking Ridge average a 72% loan-to-value on their deals.
Oak Hill Lending Corporation makes a bridge loan to Lenore for a rehab project in Basking Ridge, NJ, on a house that costs $320,000. The borrower will be required to fund 45% of the sales price in cash to closing based on a 55% loan to value set by the lender. This makes the principle amount from Oak Hill Lending Corporation $176,000. The terms of the deal dictate a 13% note for 18 months. They also stipulate a 1 point origination fee, that will also have to be paid at closing.
Therefore, Lenore will need to make a $144,000 down payment plus pay a $1,760 origination fee. The lender will collect $1,907 in monthly interest from the borrower. This is computed by taking the total loan value of $176,000, multiplying that by the 13% rate of interest, and then dividing that number by 12. If Lenore sells the renovated house for $400,000 at the end of the 18 month term, her gross profit (not including remodeling costs) would be $43,920. This is computed by taking the sales price ($400,000) and subtracting the original note amount ($176,000), the origination cost ($1,760), the cash she brought to closing ($144,000), and the total interest payments ($34,320).
Alfredo takes a bridge loan from Rehabbers Investments so he can remodel a townhome to re-sell in Basking Ridge, NJ. The deal has the following parameters:
a) A $310,000 purchase price, b) a 65% loan to value (LTV), c) a 12 month term, d) a 8% interest rate, and e) a 1% origination fee.
Once the rehab project is completed, if Alfredo sells the house for $403,000, the numbers would be the following:
$403,000 sales price
- $201,500 principle (65% LTV)
- $108,500 down payment (35% on 65% LTV)
- $2,015 origination points (1% of the $201,500 principle amount)
- $16,120 interest payments (12 months x 8% interest)
-----------------------
= $74,865 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!
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