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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!
There are 43 lenders serving Swanlake, ID. The average note issued to borrowers is approximately $278,572. Interest rates for loans average about 10.9%. The average term for notes is 20 months. The average note includes a 3.6 point origination fee. Lenders typically offer a 74% loan to value on deals in Swanlake.
Latonya finds a townhouse in Swanlake, ID to remodel and sell. Since she doesn't have enough cash available to purchase the $390,000 house outright, she takes out a private money bridge loan from Oak Hill Lending Corporation. The lender agrees to make a note with a 80% loan to value (LTV) so they will extend $312,000 on the property. The terms of the loan also include a five percent origination fee which will be paid at the closing and a 18 month, interest-only note with a 11% rate of interest.
Therefore, Latonya will need to make a $78,000 down payment in addition to paying a $15,600 origination fee. Oak Hill Lending Corporation will collect $2,860 in monthly interest from the borrower. This is calculated by taking the full note amount of $312,000, multiplying that by the 11% rate of interest, and then dividing that amount by 12. If Latonya accomplishes her goal of a $546,000 total sales price when the loan term expires, she would collect a total profit of $88,920 after re-paying the principle amount and subtracting the cash she brought to closing, the origination fee, and the monthly interest payments.
Dynamic Finance Group issues a hard money bridge loan to Nola for a rehab project in Swanlake, ID. The loan includes the following:
a) A $370,000 sales price, b) a 75% loan-to-value (LTV), c) a 18 month term, d) a 12% interest rate, and e) a 4% origination fee.
Based on a $499,500 sales price at the end of the 18 month term, the numbers for this project would look like this:
$499,500 sales price
- $277,500 loan principle (75% LTV)
- $92,500 down payment (25% on 75% LTV)
- $11,100 origination fee (4% of the $277,500 principle amount)
- $49,950 interest payments (18 months x 12% interest)
-----------------------
= $68,450 total profit (doesn't include taxes or renovation 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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