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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!
Winston, OR has 50 bridge lenders serving the city. In this city, the average amount loaned is $400,000. Rates on private loans issued to Winston borrowers average around 10.0%. 27 months is the average length for loans made in the city. The average origination fee for the loans is 2.9 percent. The average loan to value offered for loans in Winston is 76%.
Perry is an investor in Winston, OR. He discovers a run-down property for sale and wants to remodel it and sell it for a profit. The house has a cost of $310,000 but he does not have the full amount so he takes a hard money bridge loan with River City Lending. The loan to value (LTV) on the note is 55%. This means that Perry will bring 45% of the sales price to closing and the principle will be $170,500 on the note. The parameters of the note also stipulate a three percent origination fee which is to be paid at closing and a 18 month, interest-only note with a 9% interest rate.
On top of the $5,115 origination fee, Perry will also have to fund $139,500 of the purchase with his own cash, or 45% of the sales price. he will then pay $1,279 monthly to River City Lending. Assuming Perry sells the rehabed project for $403,000 at the end of the 18 month term, his total profit (not accounting for rehab expenses) would be $64,868. This is calculated by taking the sales price ($403,000) and subtracting the original note amount ($170,500), the origination cost ($5,115), the money he brought to closing ($139,500), and the total interest payments ($23,018).
Seth takes out a private money bridge loan from Reliance Funding Corporation in order to remodel a townhome to flip in Winston, OR. The loan has the following parameters:
$330,000 purchase price
60% loan-to-value (LTV)
12 month term
13% interest rate
4% origination fee
If Seth achieves his goal of a $495,000 sales price, the outcome of the deal would be as follows:
$495,000 sales price
- $198,000 note principle (60% LTV)
- $132,000 down payment (40% on 60% LTV)
- $7,920 origination points (4% of the $198,000 principle)
- $25,740 interest payments (12 months x 13% interest)
-----------------------
= $131,340 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!
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
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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Payette Financial Services is a Boise, ID based hard money lender offering loans in 10 states throughout the United States. They provide loans for a variety of needs and situations, including short term fix and flip loans, cash out ...
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