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The ORIGINAL LENDER of NOT requiring any of the below: NO Application, tax returns, credit check, appraisals, pre-inspection, prepay penalty, upfront fees, survey, bank statements or employment!
Azle, TX has 50 fix-and-flip lenders serving the city. The median loan amount is $289,445. The median interest rate for loans in Azle is 11.1%. The mean loan issued in the city has a length of 41 months. The average loan includes a 3.3 percent origination cost. Lenders in Azle average a 71% loan-to-value on their deals.
Lester takes a hard money loan from West Star Lending Group in order to remodel a house to flip in the Lake Country area of Azle, TX. The list price of the house is $330,000. The loan-to-value (LTV) on the deal is 60%. This means that Lester will have to bring 40% of the sales price to closing and the principle will be $198,000 on the deal. The note is interest-only, with monthly payments, and is for 18 months at 14% interest with 2 points paid at closing.
On top of the $3,960 origination fee, Lester will also fund $132,000 of the purchase with his own money, or 40% of the sales price. After the loan closes, he will need to pay West Star Lending Group $2,310 in monthly interest payments, or 14% multiplied by $198,000 divided by 12 months in a year. If Lester sells the house for $495,000 after 18 months, he would then earn a gross profit of $119,460 after subtracting the principle of $198,000, the cash contributed at closing of $132,000, the origination fee of $3,960, and the aggregate interest payments of $41,580. This gross profit doesn't include remodeling costs.
Rita finds a house in the Eagle Ranch neighborhood of Azle, TX to renovate and re-sell. Since she does not have enough cash to buy the property outright, she takes a fix and flip loan from Oak Hill Lending Group with the following parameters:
a) A $290,000 sales price, b) a 85% loan-to-value (LTV), c) a 6 month term, d) a 10% interest rate, and e) a 3% origination fee.
Based on a $362,500 sales price at the end of the 6 month term, the final numbers for this project would look like the following:
$362,500 sales price
- $246,500 principle on note (85% LTV)
- $43,500 cash paid at closing (15% on 85% LTV)
- $7,395 origination fee (3% of the $246,500 principle amount)
- $12,325 interest payments (6 months x 10% interest)
-----------------------
= $52,780 total profit (doesn't include taxes or renovation costs)
The ORIGINAL LENDER of NOT requiring any of the below: NO Application, tax returns, credit check, appraisals, pre-inspection, prepay penalty, upfront fees, survey, bank statements or employment!
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
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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