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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!
Sunnyside, NY has 50 hard money bridge lenders offering loans in the city. Note amounts average approximately $553,000. Rates for private loans average 10.1%. The typical term offered for notes is 18 months. The average points added to loans is 2.2%. Lenders in Sunnyside average a 72% loan to value (LTV) on their deals.
Top Notch Lending Group issues a bridge loan to Lonnie for a rehab project in the Sunnyside subdivision of Sunnyside, NY, on a property that costs $350,000. The loan-to-value (LTV) on the loan is 55%. This means that Lonnie will bring 45% of the sales price to the closing and the principle amount will be $192,500 on the loan. The deal also has the following features: 1) a 12 month length, 2) a 8% interest-only note, and 3) a four percent origination charge.
In addition to paying the $7,700 origination fee, Lonnie will also have to fund $157,500 of the purchase with his own cash, or 45% of the sales price. Once the deal closes, he will have to pay Top Notch Lending Group $1,283 in monthly interest fees, or 8% times $192,500 divided by 12 months in a year. If Lonnie sells the renovated house for $455,000 at the end of the 12 month term, his gross profit (not accounting for remodeling costs) would be $81,900. This is computed by taking the purchase price ($455,000) and subtracting the original note amount ($192,500), the origination fee ($7,700), the money he brought to closing ($157,500), and the total interest payments ($15,400).
Rising Sun Finance Group makes a bridge loan to Derrick for a rehab project in the Sunnyside area of Sunnyside, NY. The loan dictates the following:
a) A $370,000 sales price, b) a 85% loan-to-value (LTV), c) a 6 month term, d) a 8% interest rate, and e) a 5% origination fee.
Derrick intends to list the house when the note expires for $518,000. If he accomplishes his goal, the deal numbers would be as follows:
$518,000 sales price
- $314,500 note principle (85% LTV)
- $55,500 cash paid at closing (15% on 85% LTV)
- $15,725 origination points (5% of the $314,500 principle amount)
- $12,580 total interest paid (6 months x 8% interest)
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= $119,695 total 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!
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