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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!
Valhermoso Springs, AL has 39 bridge lenders serving the city. The average loan made is around $288,334. The average interest rate for private loans in Valhermoso Springs is 10.7%. The median term offered for loans is 21 months. A typical hard money loan made in this city includes a 3.0 point origination fee. Lenders offer on average a 71% loan-to-value (LTV) on deals in Valhermoso Springs.
Flippers Finance Corporation issues a hard money bridge loan to Brett for a renovation project in Valhermoso Springs, AL, on a house that costs $270,000. The terms of the deal include a 65% loan to value (LTV), so he must contribute 35% of the price as cash to closing, making the principle note amount $175,500. The interest rate on the loan is 8% for a length of 18 months and the lender requires a two point origination fee at the close. The interest payments are to be paid monthly and the principle amount will be repaid after the property sells.
Brett must bring a total of $32,400 upon closing to cover the $94,500 down payment in addition to the $3,510 origination fee. he must then pay $1,170 per month to the lender. If Brett sells the rehabed house for $378,000 at the end of the 18 month term, his gross profit (not including rehab expenses) would be $83,430. This is calculated by taking the sales price ($378,000) and subtracting the original principle ($175,500), the origination cost ($3,510), the funds he contributed to closing ($94,500), and the total interest payments ($21,060).
Rafael takes a bridge loan from Top Dog Investment Company so he can rehab a property to flip in Valhermoso Springs, AL. The loan has the following terms:
$330,000 sales price
85% loan-to-value (LTV)
12 month term
14% interest rate
5% origination fee
If Rafael accomplishes his goal of a $396,000 sales price, the final numbers of the project would be as follows:
$396,000 sales price
- $280,500 note principle (85% LTV)
- $49,500 down payment (15% on 85% LTV)
- $14,025 origination fee (5% of the $280,500 principle amount)
- $39,270 interest payments (12 months x 14% interest)
-----------------------
= $12,705 total 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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