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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!
Homestead, PA has 50 fix-and-flip hard money lenders serving the city. In this city, the average loan amount is $302,857. The average rate for private loans in Homestead is 11.5%. The median term offered for notes is 16 months. The mean note includes a 3.5 percent origination charge. Lenders in Homestead average a 74% loan to value (LTV) on their loans.
Kurt closes on a $210,000 rehab project in the Point Breeze North neighborhood of Homestead, PA, using a hard money loan from West Star Investment Corporation. The loan to value (LTV) on the note is 65%. This means that Kurt will need to bring 35% of the sales price to closing and the principle will be $136,500 on the note. The note is interest only, with monthly payments, and is for 12 months at 14% interest with 1 points to be paid when the deal closes.
By the terms of the note, Kurt will have to contribute a $1,365 origination fee in addition to 35% of the sales price, or $73,500, since there is a 65% LTV. Once the loan is closed and Kurt takes the project, he will need to begin making monthly payments of $1,593 to the lender ($136,500 principle x 14% / 12 months). If Kurt sells the rehabed house for $294,000 at the end of the 12 month term, his gross profit (not accounting for renovation expenses) would be $63,525. This is calculated by taking the purchase price ($294,000) and subtracting the original principle ($136,500), the origination cost ($1,365), the cash he brought to closing ($73,500), and the total interest payments ($19,110).
Janette is a an investor in the Squirrel Hill South neighborhood of Homestead, PA. She locates a run-down townhouse for a rehab project and takes out a hard money loan from Oak Hill Funding Company with the following paramters:
a) A $230,000 purchase price, b) a 85% loan to value (LTV), c) a 12 month term, d) a 8% interest rate, and e) a 5% origination fee.
If Janette accomplishes her goal of a $276,000 sales price, the outcome of the deal will be the following:
$276,000 sales price
- $195,500 loan principle (85% LTV)
- $34,500 down payment (15% on 85% LTV)
- $9,775 origination points (5% of the $195,500 principle amount)
- $15,640 interest payments (12 months x 8% interest)
-----------------------
= $20,585 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.
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
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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Based in Atlanta, GA, Angel Oak Prime Bridge is an asset-based lender offering loans throughout Georgia. They provide loans for many different scenarios, including fix-and-flip hard money loans, short term bridge loans, construction loans, and investment property loans. ...
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