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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!
New Hyde Park, NY has 50 fix and flip lenders operating in the city. The mean note made is approximately $346,667. The mean rate for loans in New Hyde Park is 11.2%. The typical loan issued in the city has a term of 17 months. The average note includes a 2.7 percent origination charge. Lenders typically offer a 71% loan to value on loans in New Hyde Park.
Victor takes a hard money loan from Boom Finance Company in order to remodel a property to flip in New Hyde Park, NY. The list price of the house is $160,000. The terms of the loan include a 60% loan to value (LTV), so he must bring 40% of the price as cash at closing, which makes the principle note amount $96,000. The loan is interest-only, with monthly payments, and is for 12 months at 10% interest with 2 points paid at the closing.
Victor will need to bring $64,000 to closing (40% on the 60% loan to value), plus he will pay the $1,920 origination fee. Once the loan is closed and Victor takes the property, he will have to begin making monthly payments of $800 to Boom Finance Company ($96,000 principle x 10% / 12 months). If Victor sells the project for $240,000 after 12 months, he would earn a total profit of $68,480 after subtracting the principle of $96,000, the cash contributed at closing of $64,000, the origination points of $1,920, and the aggregate interest payments of $9,600. This profit does not account for rehab costs.
Bradley finds a duplex in New Hyde Park, NY to rehab and sell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from K & M Lending Company with the following parameters:
$180,000 sales price
55% loan-to-value (LTV)
12 month term
10% interest rate
2% origination fee
If Bradley accomplishes his goal of a $261,000 sales price, the final numbers of the deal would be the following:
$261,000 sales price
- $99,000 principle (55% LTV)
- $81,000 down payment (45% on 55% LTV)
- $1,980 origination points (2% of the $99,000 principle)
- $9,900 interest payments (12 months x 10% interest)
-----------------------
= $69,120 total profit (doesn't 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!
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