
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
A total of 50 records for fix-and-flip lenders were found in Gwynn Oak, MD. In this city, the mean amount loaned is $330,000. Rates on loans made to Gwynn Oak borrowers average around 12.1%. The median loan made in the city is for 18 months. The average note includes a 4.0 percent origination charge. 68% is the typical loan-to-value (LTV) offered for for loans in Gwynn Oak.
Fair View Finance Company makes a hard money loan to Paul for a renovation project in the Concerned Citizens of Forest Park area of Gwynn Oak, MD, on a property that costs $250,000. The borrower will have to bring 30% of the purchase price in cash to the closing based on a 70% loan-to-value set by the lending company. This makes the principle note from Fair View Finance Company $175,000. The parameters of the note also include a five percent origination fee which is to be paid at the closing and a 18 month, interest-only note with a 8% interest rate.
By the terms of the loan, Paul will be required to pay a $8,750 origination fee plus 30% of the purchase price, or $75,000, since there is a 70% LTV. After the deal is closed and Paul takes the property, he will need to begin making payments each month of $1,167 to Fair View Finance Company ($175,000 principle x 8% / 12 months). At the end of the loan, he sells the rehabed property for $350,000. After subtracting the $21,000 in interest payments ($1,167 multiplied by 18 months), the $8,750 origination fee, the $175,000 principle on the loan, and the $75,000 he brought to the closing, he will earn a gross profit of $70,250 ($350,000 sales price minus $279,750 in costs). This amount would be reduced by any renovation costs paid by Paul.
South End Lending Company issues a fix and flip loan to Clifford for a rehab project in the Lucille Park neighborhood of Gwynn Oak, MD. The loan includes the following:
a) A $370,000 sales price, b) a 65% loan to value (LTV), c) a 18 month term, d) a 14% interest rate, and e) a 3% origination fee.
Assuming a $462,500 sales price at the end of the 18 month term, the outcome for this project would look like this:
$462,500 sales price
- $240,500 loan principle (65% LTV)
- $129,500 cash paid at closing (35% on 65% LTV)
- $7,215 origination points (3% of the $240,500 principle)
- $50,505 interest payments (18 months x 14% interest)
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= $34,780 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.
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