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A total of 50 records for private money bridge lenders were found in West Newbury, MA. Loan amounts average about $310,834. The mean rate for loans in West Newbury is 11.7%. The mean loan made in this city is 15 months in length. The average points charged for loans is 3.5%. Lenders typically offer a 75% loan to value on hard money loans in West Newbury.
Cecile takes a bridge loan from Credence Lending Company in order to remodel a house to resale in West Newbury, MA. The sales price of the house is $380,000. Since the lender sets a 50% loan-to-value, Cecile will need to put 50% down and the principle amount of the note will be $190,000. The note is interest-only, paid monthly, and is for 12 months at 8% interest with 4 points paid when the deal closes.
The borrower must fund a total of $32,400 upon closing to pay the $190,000 down payment in addition to the $7,600 origination fee. After the deal is executed and Cecile takes the property, she will have to begin making payments each month of $1,267 to Credence Lending Company ($190,000 principle x 8% / 12 months). If Cecile sells the project for $513,000 after 12 months, she would then earn a total profit of $110,200 after deducting the original principle of $190,000, the money paid at the close of $190,000, the origination points of $7,600, and the total interest payments of $15,200. This gross profit does not account for remodeling costs.
Jacquelyn is a an investor in West Newbury, MA. She finds an older townhouse for a remodeling project and obtains a hard money bridge loan from Smith Funding with the following terms:
$200,000 sales price
60% loan to value (LTV)
12 month term
8% rate of interest
5% origination fee
Jacquelyn plans to list the house when the note expires for $300,000. If she accomplishes her goal, the deal numbers would be the following:
$300,000 sales price
- $120,000 note principle (60% LTV)
- $80,000 cash paid at closing (40% on 60% LTV)
- $6,000 origination points (5% of the $120,000 principle)
- $9,600 total interest paid (12 months x 8% interest)
-----------------------
= $84,400 total profit (does not 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!
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Straightline Funding is direct hard money lender that provides loans in many larger metro areas throughout the US. We specialize in 1-4 family loans for investors. Our loan menu consists of:R2R (Residential For Rent): 30 Year fixed rate loans for ...
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Layla Capital is a direct lender based in Boca Raton, FL (formerly New York City) that specializes in small to middle market debt opportunities in primary and secondary markets nationwide, with a greater focus on the East Coast and Midwest. ...
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Rehab Financial Group is hard money lender based in Rosemont, PA. They offer loans in 15 states across the US. They offer lending solutions for a variety of scenarios, including fix and flip loans, short term loans, ...
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