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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!
Sugar City, ID has 43 private money bridge lenders serving the city. Loan amounts average around $347,143. The mean interest rate for loans in Sugar City is 11.5%. The average note issued in the city is 15 months in length. The mean origination fee for the loans is 3.3 percent. Lenders in Sugar City average a 73% LTV on their loans.
Lester is a real estate investor in Sugar City, ID. He locates an older property for sale and decides to renovate it and flip it for a profit. The property costs $170,000 but he does not have the full amount so he obtains a private money bridge loan with Friendly Finance Company. The loan to value (LTV) on the loan is 80%. This means that Lester will need to bring 20% of the sales price to the closing and the principle will be $136,000 on the deal. The interest rate on the loan is 8% for a length of 18 months and the company requires a five point origination fee at the close. The interest payments are to be paid on a monthly basis and the principle will be returned after the sale of the property.
Lester will need to bring $34,000 to the closing (20% on the 80% loan-to-value), plus he will pay the $6,800 origination fee. The lender will collect $907 in monthly interest from the Lester. This is computed by taking the total loan value of $136,000, multiplying that by the 8% rate of interest, and then dividing that amount by 12. If Lester achieves his goal of a $255,000 sales price when the loan term expires, he would earn a gross profit of $61,880 after re-paying the principle on the note and deducting the money he paid at closing, the origination points, and the monthly interest payments.
Eduardo takes a private money bridge loan from Acme Lending in order to rehab a house to resell in Sugar City, ID. The loan has the following parameters:
a) A $250,000 sales price, b) a 80% loan-to-value (LTV), c) a 6 month term, d) a 14% interest rate, and e) a 3% origination fee.
If Eduardo succeeds in his goal of a $337,500 sales price, the outcome of the deal would be as follows:
$337,500 sales price
- $200,000 principle (80% LTV)
- $50,000 down payment (20% on 80% LTV)
- $6,000 origination fee (3% of the $200,000 principle)
- $14,000 interest payments (6 months x 14% interest)
-----------------------
= $67,500 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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