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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!
Arlington, VA has 50 private money lenders operating in the city. The average note made to borrowers is about $377,273. The average rate for hard money loans in Arlington is 11.3%. The median loan made in the city is for 12 months. The mean note includes a 3.5 point origination charge. 67% is the typical LTV offered for for loans in Arlington.
Antonio is a house flipper in Arlington, VA. He locates an older property for sale in the Donaldson Run neighborhood and decides to remodel it and re-sell it for a profit. The property costs $360,000 but he doesn't have the full amount so he takes a private money loan with Easy Brook Funding Company. The loan to value (LTV) on the deal is 50%. This means that Antonio will have to bring 50% of the sales price to closing and the principle will be $180,000 on the deal. The loan also consists of these features: 1) a 6 month length, 2) a 10% interest-only note, and 3) a five percent origination charge.
The borrower will have to fund a total of $32,400 upon closing to pay the $180,000 down payment plus the $9,000 origination fee. he will then pay $1,500 monthly to Easy Brook Funding Company. If Antonio sells the rehabed house for $540,000 at the end of the 6 month term, his gross profit (not including rehab expenses) would be $162,000. This is calculated by taking the purchase price ($540,000) and subtracting the principle ($180,000), the origination cost ($9,000), the cash he brought to closing ($180,000), and the total interest payments ($9,000).
Ralph locates a house in the Woodmont area of Arlington, VA to remodel and resell. Since he does not have enough cash to buy the property outright, he takes a hard money loan from Coastal Lending Group with the following parameters:
a) A $360,000 sales price, b) a 85% loan to value (LTV), c) a 18 month term, d) a 8% interest rate, and e) a 3% origination fee.
Assuming a $450,000 sales price after the 18 month term, the numbers for the deal would look like the following:
$450,000 sales price
- $306,000 principle on note (85% LTV)
- $54,000 cash paid at closing (15% on 85% LTV)
- $9,180 origination fee (3% of the $306,000 principle)
- $36,720 total interest paid (18 months x 8% interest)
-----------------------
= $44,100 total 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!
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!
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
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