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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.
A total of 50 records for fix-and-flip lenders were found in Merion Station, PA. The average note issued to borrowers is about $310,000. The average rate for private loans in Merion Station is 12.4%. The average loan made in the city is 12 months in length. The average loan offered in this city carries a 3.1 point origination charge. 72% is the typical loan-to-value offered for offered by lenders in Merion Station.
Jorge finds a property in the Belmont subdivision of Merion Station, PA to flip and sell. Since he does not have enough cash on-hand to purchase the $200,000 house outright, he takes out a fix-and-flip loan from Green Square Lending Company. As the lender sets a 75% loan to value, Jorge will be required to put 25% down so the principle amount of the loan will be $150,000. The deal also has these features: 1) a 12 month term, 2) a 14% interest only note, and 3) a two point origination fee.
In addition to paying the $3,000 origination fee, Jorge will also have to fund $50,000 of the purchase with his own funds, or 25% of the purchase price. After the deal is executed and Jorge takes the project, he will begin making monthly payments of $1,750 to the lender ($150,000 principle x 14% / 12 months). Jorge's plan is to finish the house by the end of the 12 months and sell it for $240,000. If he succeeds he will make a profit of $16,000 ($240,000 sales price - $150,000 principle amount - $50,000 funds brough to closing - $3,000 origination fee - $21,000 in total interest.
Big City Investment Corporation makes a loan to Seth for a rehab project in the East Parkside neighborhood of Merion Station, PA. The loan dictates the following:
$210,000 sales price
75% loan-to-value (LTV)
6 month term
10% interest rate
2% origination fee
Assuming a $273,000 sales price at the end of the 6 month term, the numbers for this project would look like this:
$273,000 sales price
- $157,500 principle on note (75% LTV)
- $52,500 down payment (25% on 75% LTV)
- $3,150 origination points (2% of the $157,500 principle amount)
- $7,875 interest payments (6 months x 10% interest)
-----------------------
= $51,975 total profit (does not include taxes or renovation costs)
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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