
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
Brandywine, MD has 50 fix-and-flip lenders operating within the city. The mean amount for loans is $285,715. The mean rate for hard money loans in Brandywine is 10.9%. 16 months is the mean length for loans issued in this city. The average origination fee for loans is 2.7 points. 74% is the median loan-to-value offered for offered by lenders in Brandywine.
Tom takes a hard money loan from Frontera Investment Group in order to renovate a townhouse to resale in Brandywine, MD. The list price of the house is $380,000. The terms of the deal include a 75% loan-to-value (LTV), so he must contribute 25% of the price as cash at closing, making the principle loan amount $285,000. The note is interest-only, paid monthly, and is for 18 months at 12% interest with 3 points paid at the closing.
The borrower will need to fund a total of $32,400 up front to pay the $95,000 down payment plus the $8,550 origination fee. The monthly interest-only payments will then be $2,850 to Frontera Investment Group. If Tom sells the house for $456,000 after 18 months, he would realize a total profit of $16,150 after subtracting the principle amount of $285,000, the funds contributed at closing of $95,000, the origination points of $8,550, and the aggregate interest payments of $51,300. This amount does not include rehab costs.
Roland is a real estate investor in Brandywine, MD. He purchases a run-down house for a rehab project and takes a private money loan from Johnson Finance Corporation with the following terms:
a) A $210,000 sales price, b) a 55% loan to value (LTV), c) a 18 month term, d) a 12% interest rate, and e) a 4% origination fee.
Once the renovation project is finished, if Roland sells the house for $283,500, the numbers would be the following:
$283,500 sales price
- $115,500 note principle (55% LTV)
- $94,500 down payment (45% on 55% LTV)
- $4,620 origination points (4% of the $115,500 principle)
- $20,790 interest payments (18 months x 12% interest)
-----------------------
= $48,090 total profit (does not include taxes or renovation costs)
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
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.
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