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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!
Athens, OH has 50 private money lenders in the city. Loan amounts average approximately $292,188. The average rate for hard money loans in Athens is 11.0%. The median note issued in this city is for 48 months. The average origination for loans is 3.0 points. Lenders in Athens average a 76% loan to value on their deals.
Shirley is a house flipper in Athens, OH. She locates a run-down property and decides to rehab it and resell it for a profit. The property has a cost of $300,000 but she does not have the full amount so she takes out a private money loan with Cordial Funding Group. The loan to value (LTV) on the loan is 70%. This means that Shirley will have to bring 30% of the sales price to closing and the principle will be $210,000 on the note. The rate on the loan is 10% for a length of 12 months and the company requires a one point origination fee at closing. The interest payments are to be paid on a monthly basis and the principle will be paid back after the sale of the property.
On top of the $2,100 origination fee, Shirley will also need to fund $90,000 of the purchase with her own funds, or 30% of the sales price. After the loan is closed and Shirley takes on the project, she will have to begin making monthly payments of $1,750 to Cordial Funding Group ($210,000 principle x 10% / 12 months). At the end of the note, she sells the rehabed property for $450,000. After subtracting the $21,000 in total interest payments ($1,750 times 12 months), the $2,100 origination fee, the $210,000 principle on the note, and the $90,000 she brought to closing, she will make a total profit of $126,900 ($450,000 price minus $323,100 in costs). This amount would be reduced by any rehab costs paid out of pocket.
Scott is a an investor in Athens, OH. He purchases a run-down house for a remodeling project and obtains a hard money loan from Red City Funding Company with the following paramters:
$160,000 sales price
60% loan to value (LTV)
18 month term
14% interest rate
2% origination fee
After the renovation project is complete, if Scott sells the house for $240,000, the numbers would be the following:
$240,000 sales price
- $96,000 principle on note (60% LTV)
- $64,000 cash paid at closing (40% on 60% LTV)
- $1,920 origination fee (2% of the $96,000 principle amount)
- $20,160 interest payments (18 months x 14% interest)
-----------------------
= $57,920 gross 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!
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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