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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!
Friendship, MD has 50 fix and flip hard money lenders operating within the city. Loan amounts average around $321,429. Rates for hard money loans average around 11.3%. The mean term for loans is 20 months. A typical hard money loan issued in this city includes a 3.5 point origination charge. Lenders in Friendship average a 71% LTV on their loans.
Shawn is an investor in Friendship, MD. He finds an older property and decides to remodel it and flip it for a profit. The property costs $230,000 but he doesn't have the full amount so he obtains a hard money loan with Flourish Investment Corporation. The borrower will be required to contribute 50% of the sales price in cash to the closing based on a 50% loan to value stipulated by the lender. This makes the loan principle from Flourish Investment Corporation $115,000. The rate on the loan is 8% for a term of 6 months and the company requires a two point origination fee at closing. The interest payments are to be paid monthly and the principle will be repaid after the property sells.
In addition to paying the $2,300 origination fee, Shawn will also need to fund $115,000 of the purchase with his own cash, or 50% of the sales price. After the loan closes, he will need to pay the lender $767 in monthly interest fees, or 8% times $115,000 divided by 12 months in the year. At the end of the loan, he sells the rehabed property for $299,000. After subtracting the $4,600 in interest payments ($767 times 6 months), the $2,300 origination fee, the $115,000 principle on the loan, and the $115,000 he contributed to the closing, he will make a gross profit of $62,100 ($299,000 price minus $236,900 in costs). This profit would be reduced by any rehab costs paid by the borrow.
East Star Finance issues a loan to Jerry for a rehab project in Friendship, MD. The loan includes the following:
a) A $380,000 purchase price, b) a 50% loan to value (LTV), c) a 12 month term, d) a 10% interest rate, and e) a 1% origination fee.
After the renovation project is complete, if Jerry sells the house for $456,000, the outcome would be as follows:
$456,000 sales price
- $190,000 principle (50% LTV)
- $190,000 cash paid at closing (50% on 50% LTV)
- $1,900 origination points (1% of the $190,000 principle)
- $19,000 interest payments (12 months x 10% interest)
-----------------------
= $55,100 total profit (doesn't include taxes or rehab 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!
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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