Tennessee Bridge Loans
Tennessee has 35 bridge lenders operating in the state. The median note amount in this state is $291,703. Interest rates for private loans average around 10.6%. The mean term offered for loans is 15 months. The mean origination fee for the loans is 2.9 points. Lenders in Tennessee average a 75% loan-to-value (LTV) on their loans.
Loan Example 1
Herman closes on a $370,000 rehab project in Hixson, TN, using a bridge loan from West Star Lending. The lender agrees to make a note with a 60% loan to value (LTV) so they will loan $222,000 on the project. The loan also consists of the following features: 1) a 18 month term, 2) a 14% interest-only note, and 3) a one point origination charge.
In addition to paying the $2,220 origination fee, Herman will also need to fund $148,000 of the purchase with his own money, or 40% of the sales price. Once the loan closes, he will have to pay the lender $2,590 in monthly interest fees, or 14% multiplied times $222,000 divided by 12 months in a year. If Herman sells the project for $518,000 after 18 months, he would then earn a gross profit of $99,160 after deducting the principle amount of $222,000, the cash paid at the close of $148,000, the origination points of $2,220, and the total interest payments of $46,620. This gross profit does not include building costs.
Loan Example 2
Ted takes a private money bridge loan from Johnson Finance Group in order to remodel a townhouse to resell in Soddy Daisy, TN. The loan has the following terms:
$250,000 purchase price
60% loan-to-value (LTV)
6 month term
11% interest rate
2% origination fee
Once the renovation project is complete, if Ted sells the project for $312,500, the outcome would be as follows:
$312,500 sales price
- $150,000 principle on note (60% LTV)
- $100,000 down payment (40% on 60% LTV)
- $3,000 origination fee (2% of the $150,000 principle amount)
- $8,250 interest payments (6 months x 11% interest)
-----------------------
= $51,250 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!
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
Temple View Capital
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Anchor Loans
5230 Las Virgenes Rd, Suite 105
Calabasas, CA 91302
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Kiavi
575 Market Street
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Harbor Private Equity
1075 Peachtree Street NE, Suite 3650
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New Silver
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Easy Street Capital
201 W 5th St Suite 1100
Austin, TX 78701
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Patch Lending
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Angel Oak Prime Bridge
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LYNK Capital
7100 Six Forks Road, Suite 335
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Secured Investment Lending
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Park Place Finance
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Austin, TX 78701
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Gelt Financial
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Layla Capital
7777 Glades Road
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Hilton Financial Corporation
11024 N. 28th Drive Suite 170
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Sherman Bridge Lending
5000 Riverside Drive, Bldg. 5, Suite 100W
Irving, TX 75039
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T&M Commercial Funding
259 Minot Ave
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LendingOne
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Red Rock Capital
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Cherrywood Commercial
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Sharestates
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Rapid Commercial Loans
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Aero Capital Finance
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Render Capital Group
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NLDS Corp
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ReCasa Financial Group
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Asset Avenue
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ARC Capital
100 Stony Point Rd., Suite 260
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