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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!
Williamstown, NJ has 50 fix and flip lenders offering loans within the city. In this city, the average note amount is $301,786. Rates on private loans made to Williamstown investors average 12.0%. The median note issued in this city is 51 months in length. The average origination for the loans is 3.5 points. 67% is the average loan-to-value (LTV) offered for offered by lenders in Williamstown.
Edgar takes a private money loan from Brown Investment Company in order to remodel a house to flip in Williamstown, NJ. The sales price of the house is $350,000. The lender agrees to write a note with a 75% loan to value (LTV) so they are willing to extend $262,500 on the property. The terms of the note also stipulate a one percent origination fee which is to be paid at closing and a 18 month, interest-only note with a 11% interest rate.
Edgar will have to contribute $87,500 to closing (25% on the 75% loan to value), plus he will need to pay the $2,625 origination fee. The monthly interest-only payments will then be $2,406 to Brown Investment Company. At the end of the note, he sells the renovated house for $455,000. After deducting the $43,313 in interest payments ($2,406 multiplied by 18 months), the $2,625 origination fee, the $262,500 principle amount on the note, and the $87,500 he contributed to closing, he will make a gross profit of $59,063 ($455,000 sales price minus $395,938 in total costs). This profit would be reduced by any building costs paid by Edgar.
Tameka is a real estate investor in Williamstown, NJ. She buys a run-down property for a remodeling project and obtains a private money loan from River View Investment Corporation with the following paramters:
a) A $340,000 purchase price, b) a 50% loan-to-value (LTV), c) a 6 month term, d) a 10% interest rate, and e) a 4% origination fee.
If Tameka accomplishes her goal of a $459,000 sales price, the final numbers of the deal will be the following:
$459,000 sales price
- $170,000 loan principle (50% LTV)
- $170,000 down payment (50% on 50% LTV)
- $6,800 origination fee (4% of the $170,000 principle amount)
- $8,500 total interest paid (6 months x 10% interest)
-----------------------
= $103,700 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!
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!
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