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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!
Valley Lee, MD has 50 fix-and-flip hard money lenders issuing loans in the city. The average amount for loans is $287,500. Interest rates on loans made to Valley Lee investors average 11.6%. The median loan made in this city is for 10 months. The average origination for loans is 3.3 percent. 73% is the median loan to value offered for for loans in Valley Lee.
Ray is a real estate investor in Valley Lee, MD. He discovers a run-down property and decides to remodel it and sell it for a profit. The property has a cost of $300,000 but he does not have the full amount so he takes out a private money loan with River View Lending. The loan to value (LTV) on the note is 60%. This means that Ray will need to bring 40% of the purchase price to the closing and the principle will be $180,000 on the loan. The loan also has these features: 1) a 18 month length, 2) a 10% interest only note, and 3) a four point origination fee.
In addition to paying the $7,200 origination fee, Ray will also fund $120,000 of the purchase with his own funds, or 40% of the purchase price. he must then pay $1,500 monthly to the lender. If Ray sells the house for $435,000 after 18 months, he would then make a total profit of $100,800 after deducting the original principle of $180,000, the money contributed at the close of $120,000, the origination fee of $7,200, and the total interest payments of $27,000. This amount does not include building costs.
Rachelle takes a loan from Pretty Perfect Lending Company in order to remodel a townhome to flip in Valley Lee, MD. The loan has the following parameters:
$160,000 purchase price
75% loan-to-value (LTV)
12 month term
9% rate of interest
1% origination fee
Assuming a $208,000 sales price after the 12 month term, the numbers for this deal would look like the following:
$208,000 sales price
- $120,000 note principle (75% LTV)
- $40,000 cash paid at closing (25% on 75% LTV)
- $1,200 origination fee (1% of the $120,000 principle)
- $10,800 interest payments (12 months x 9% interest)
-----------------------
= $36,000 gross profit (does not 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!
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.
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
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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