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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!
Riderwood, MD has 50 fix and flip lenders operating within the city. Note amounts average around $280,313. The average rate for private loans in Riderwood is 12.1%. The typical note issued in this city has a length of 10 months. The average loan issued in this city includes a 3.5 point origination cost. 68% is the median loan-to-value (LTV) for offered by lenders in Riderwood.
Sidney is an investor in Riderwood, MD. He discovers an run-down property for sale in the Hampton area and decides to renovate it and re-sell it for a profit. The house has a cost of $240,000 but he does not have the full amount so he obtains a fix-and-flip loan with North Star Funding Group. The terms of the loan include a 65% loan-to-value (LTV), so he must contribute 35% of the price as cash at closing, which makes the principle loan amount $156,000. The terms of the loan dictate a 14% note for 6 months. They also stipulate a 3 point origination fee, which will also have to be paid upon closing.
By the parameters of the loan, Sidney will need to contribute a $4,680 origination fee plus 35% of the purchase price, or $84,000, based on the 65% LTV. After the loan is executed and Sidney takes the project, he will have to begin making payments each month of $1,820 to North Star Funding Group ($156,000 principle x 14% / 12 months). If Sidney sells the renovated project for $300,000 at the end of the 6 month term, his total profit (not including renovation costs) would be $44,400. This is computed by taking the purchase price ($300,000) and subtracting the principle ($156,000), the origination fee ($4,680), the money he contributed to closing ($84,000), and the total interest expenses ($10,920).
Friendly Lending Group issues a private money loan to Elva for a rehab project in the Hampton neighborhood of Riderwood, MD. The loan dictates the following:
$380,000 purchase price
85% loan-to-value (LTV)
12 month term
13% rate of interest
1% origination fee
If Elva achieves her goal of a $475,000 sales price, the final numbers of the deal would be as follows:
$475,000 sales price
- $323,000 note principle (85% LTV)
- $57,000 down payment (15% on 85% LTV)
- $3,230 origination points (1% of the $323,000 principle amount)
- $41,990 interest payments (12 months x 13% interest)
-----------------------
= $49,780 total profit (does not include taxes or renovation costs)
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!
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.
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