North Dakota Refinance / Cash Out Loans

Myrtle owns a a retail space she uses for her business operations in Bismarck, ND. She makes a deal with her partner to purchase their share of the partnership but she does not have the fund to do so. To make the transaction move forward, she takes money from the equity she has in her property through a hard money cash-out refinancing from North Side Lending Group. After estimating the property to be worth around $2,600,000, the lender contracts to a 55% loan to value (LTV) for the loan. Additionally, they stipulate a 9% rate of interest, a 1 year note term, and they will collect an origination fee of 4 percent at the close. Interest only payments are to be made monthly with the loan principle repaid when the loan expires. Myrtle will receive $1,372,800 in cash from North Side Lending Group when the deal closes ($2,600,000 market value x 55% LTV - $57,200 in origination fees). She will then begin making payments each month in the amount of $10,725 for the 1 year duration of the loan. She will then make a final payment of $1,430,000 to retire the debt.

Gene owns and operates a business in Bismarck, ND. He runs his operations from a warehouse that he owns in full. He makes a deal with his business partner to buy out their ownership of the partnership but he does not have the personal cash to do so. To make the transaction happen, he takes cash from the equity he has in his building through a private money cash-out refi loan through J & T Investment Corporation. The lender carries out a valuation analysis and deems the real estate to be valued at $1,300,000. They will loan Gene 60% of the estimated market value (the LTV). The lender will deduct 4 origination points at closing and will then collect interest only payments at 14% for 1 years. The principle is to be paid off in a single balloon sum when the loan matures. Gene will receive $748,800 in cash from J & T Investment Corporation when the deal closes ($1,300,000 estimated value x 60% LTV - $31,200 in origination charges). He will then make payments each month of $9,100 for the 1 year duration of the loan. He will also make a final payment of $780,000 to retire the debt.