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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!
Duvall, WA has 50 fix-and-flip hard money lenders serving the city. The average note amount in the city is $372,500. Rates on hard money loans made to Duvall borrowers average about 11.1%. 16 months is the average length for notes issued in the city. The average loan offered in the city carries a 2.8 percent origination fee. Lenders in Duvall average a 78% loan-to-value (LTV) on their loans.
Daryl closes on a $370,000 rehab project in the Lake Marcel-Stillwater neighborhood of Duvall, WA, using a fix and flip loan from Ocean View Investment Corporation. The borrower will have to contribute 15% of the purchase price in cash to the closing based on a 85% loan to value set by the lending company. This makes the principle amount from Ocean View Investment Corporation $314,500. The interest rate on the loan is 12% for a length of 6 months and the company requires a three point origination fee at the close. The interest is to be paid on a monthly basis and the principle will be returned after the sale of the property.
By the terms of the note, Daryl will need to contribute a $9,435 origination fee in addition to 15% of the purchase price, or $55,500, based on the 85% LTV. Once the loan is executed and Daryl takes on the property, he will need to begin making payments each month of $3,145 to the lender ($314,500 principle x 12% / 12 months). At the end of the note, he sells the renovated property for $499,500. After deducting the $18,870 in interest expenses ($3,145 times 6 months), the $9,435 origination fee, the $314,500 principle amount on the note, and the $55,500 he brought to the closing, he will earn a gross profit of $101,195 ($499,500 price minus $398,305 in total costs). This profit would then be reduced by any building costs paid by Daryl.
Ina is a real estate investor in the Lake Marcel-Stillwater area of Duvall, WA. She purchases an older townhouse for a rehab project and takes out a hard money loan from Big Money Investment Group with the following paramters:
a) A $160,000 purchase price, b) a 75% loan to value (LTV), c) a 6 month term, d) a 9% interest rate, and e) a 4% origination fee.
Once the renovation project is complete, if Ina sells the project for $200,000, the final numbers would be as follows:
$200,000 sales price
- $120,000 loan principle (75% LTV)
- $40,000 down payment (25% on 75% LTV)
- $4,800 origination points (4% of the $120,000 principle amount)
- $5,400 total interest paid (6 months x 9% interest)
-----------------------
= $29,800 total profit (does not include taxes or renovation costs)
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!
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.
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!
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