South Dakota Refinance / Cash Out Loans

Zachary is a business owner in Aberdeen, SD who owns a commercial building for his operations. He comes to a deal with his partner to purchase their ownership of the enterprise but he does not have the cash on hand for the deal. In order to make the deal move forward, he takes cash from the equity in his building through a hard money cash out refinance from Presitge Funding. After deeming the building to be worth approximately $2,500,000, they contract to a 60% loan-to-value (LTV) for the transaction. The lender will deduct 1 origination points when the deal closes and then be paid interest-only payments at 9% for 1 years. The principle will be paid back in a single balloon payment when the loan matures. According to the specifications of this loan, Presitge Funding will loan Zachary a sum of $1,485,000 on his building ($2,500,000 value x 60% LTV - $15,000 in origination points). Zachary will pay $11,250 monthly in interest payments until the loan matures and will finally repay the $1,500,000 principle amount of the loan.

Christian owns and operates a small business in Aberdeen, SD. He runs his operations from an office building which he owns in full. So he can generate much needed capital to operate his company, he takes out part of the equity he has in his building via a private money cash-out refi loan from Blue Door Funding Group. The lender agrees to fund 45% of the estimated market value of the real estate (LTV) in exchange for a first lien and they conclude the building to be valued at around $1,100,000. Additionally, they specify a 11% rate of interest, a 3 year note term, and they will charge an origination fee of 2 points at the close. Interest only payments are to be made each month with the loan principle repaid when the note matures. The principle will be $495,000 but Blue Door Funding Group will contribute Christian $485,100 after deducting the origination fees of $9,900. They will also receive $4,538 in monthly interest until they are repaid when the note matures.