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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!
Southlake, TX has 50 fix and flip hard money lenders operating in the city. The mean loan issued is about $308,889. The mean interest rate for loans in Southlake is 11.3%. 41 months is the mean length for loans issued in the city. The average loan made in this city carries a 2.9 point origination fee. The mean loan-to-value for loans in Southlake is 73%.
Polly finds a townhome in Southlake, TX to flip and sell. Since she does not have enough cash to buy the $220,000 house outright, she takes out a fix and flip loan from Sunrise Funding Group. The borrower will need to bring 20% of the purchase price in cash to the closing based on a 80% loan to value set by the lender. This makes the loan principle from Sunrise Funding Group $176,000. The parameters of the loan dictate a 10% note for 18 months. They also require a 2 point origination fee, that will also be paid when the property closes.
Therefore, the borrower will be required to contribute a $44,000 down payment plus pay a $3,520 origination fee. The lender will collect $1,467 in monthly interest payments from the Polly. This is calculated by taking the full note amount of $176,000, multiplying by the 10% rate of interest, and then dividing that amount by 12. If Polly sells the property for $264,000 after 18 months, she would realize a gross profit of $14,080 after deducting the original principle of $176,000, the funds contributed at the close of $44,000, the origination points of $3,520, and the total interest payments of $26,400. This profit does not account for remodeling costs.
Tammie locates a property in Southlake, TX to renovate and re-sell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from Blue Door Finance Group with the following parameters:
a) A $360,000 purchase price, b) a 65% loan-to-value (LTV), c) a 12 month term, d) a 13% interest rate, and e) a 5% origination fee.
Based on a $504,000 sales price after the 12 month term, the final numbers for the deal would look like this:
$504,000 sales price
- $234,000 principle on note (65% LTV)
- $126,000 cash paid at closing (35% on 65% LTV)
- $11,700 origination points (5% of the $234,000 principle)
- $30,420 total interest paid (12 months x 13% interest)
-----------------------
= $101,880 gross profit (doesn't include taxes or rehab 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!
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!
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!
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
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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