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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!
Addison, TX has 50 fix and flip hard money lenders operating within the city. The mean loan amount is $407,813. Interest rates for loans average about 10.3%. The mean loan issued in this city has a term of 20 months. The average note includes a 2.5 point origination cost. Lenders in Addison average a 72% loan to value (LTV) on their deals.
West End Lending Corporation issues a private money loan to Estela for a rehab project in the North Dallas subdivision of Addison, TX, on a property that is listed for $200,000. The lender agrees to write a loan with a 85% loan-to-value (LTV) so they will loan $170,000 on the property. The interest rate on the loan is 8% for a length of 12 months and the company requires a three point origination fee at closing. The interest payments are to be paid on a monthly basis and the principle will be repaid after the property sells.
Estela will need to fund a total of $32,400 up front to cover the $30,000 down payment in addition to the $5,100 origination fee. After the deal closes, she will need to pay West End Lending Corporation $1,133 in monthly interest fees, or 8% times $170,000 divided by 12 months in a year. At the end of the loan, she sells the renovated property for $250,000. After subtracting the $13,600 in interest payments ($1,133 times 12 months), the $5,100 origination fee, the $170,000 principle on the loan, and the $30,000 she brought to the closing, she will earn a total profit of $31,300 ($250,000 sales price minus $218,700 in total costs). This amount would be reduced by any building costs paid by the borrow.
Francis finds a duplex in the North Dallas neighborhood of Addison, TX to rehab and resell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from All American Finance with the following parameters:
a) A $340,000 sales price, b) a 55% loan-to-value (LTV), c) a 12 month term, d) a 14% interest rate, and e) a 1% origination fee.
If Francis accomplishes her goal of a $459,000 sales price, the outcome of the project will be the following:
$459,000 sales price
- $187,000 loan principle (55% LTV)
- $153,000 cash paid at closing (45% on 55% LTV)
- $1,870 origination points (1% of the $187,000 principle amount)
- $26,180 interest payments (12 months x 14% interest)
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= $90,950 gross profit (does not 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!
The ORIGINAL LENDER of NOT requiring any of the below: NO Application, tax returns, credit check, appraisals, pre-inspection, prepay penalty, upfront fees, survey, bank statements or employment!
Funding Fix & Flip, Ground-Up Construction, and DSCR loans in 35 States. We're the lender for real estate entrepreneurs looking for fast funding, fair pricing, and amazing service.
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!
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