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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!
Wolf, WY has 38 hard money bridge lenders serving the city. The median note amount in this city is $337,500. Rates on loans issued to Wolf investors average 11.5%. The mean term for notes is 20 months. The average origination fee for the loans is 3.5 percent. The mean loan-to-value for loans in Wolf is 77%.
Oscar is an investor in Wolf, WY. He finds a run-down property for sale and wants to remodel it and sell it for a profit. The property has a cost of $160,000 but he doesn't have the full amount so he takes out a hard money bridge loan with West Shore Investment Company. The loan to value (LTV) on the note is 50%. This means that Oscar will have to bring 50% of the sales price to the closing and the principle amount will be $80,000 on the loan. The terms of the loan dictate a 8% note for 18 months. They also require a 5 point origination fee, that will also need to be paid at closing.
Therefore, Oscar will need to contribute a $80,000 down payment plus pay a $4,000 origination fee. Once the deal is executed and Oscar takes over the property, he will have to begin making monthly payments of $533 to the lender ($80,000 principle x 8% / 12 months). If Oscar meets his goal of a $240,000 sales price when the loan term expires, he would earn a total profit of $66,400 after re-paying the principle and subtracting the money he contributed at closing, the origination fee, and the total monthly interest payments.
Richard takes a bridge loan from Rising Sun Investment Group so he can rehab a house to flip in Wolf, WY. The loan has the following parameters:
$250,000 purchase price
50% loan to value (LTV)
6 month term
10% rate of interest
4% origination fee
If Richard accomplishes his goal of a $325,000 sales price, the numbers of the deal would be as follows:
$325,000 sales price
- $125,000 loan principle (50% LTV)
- $125,000 cash paid at closing (50% on 50% LTV)
- $5,000 origination points (4% of the $125,000 principle)
- $6,250 interest payments (6 months x 10% interest)
-----------------------
= $63,750 gross profit (does not include taxes or renovation 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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