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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!
Cashion, AZ has 50 hard money lenders serving the city. In this city, the median loan amount is $410,000. Interest rates for private loans average around 11.7%. The mean loan issued in the city is for 20 months. The mean origination fee for the loans is 2.6 points. Lenders offer on average a 75% loan-to-value (LTV) on loans in Cashion.
Lorrie is an investor in Cashion, AZ. She locates an older property and decides to remodel it and sell it for a profit. The property costs $220,000 but she doesn't have the full amount so she takes out a private money loan with Flourish Finance Group. The terms of the deal include a 75% loan-to-value (LTV), so she must contribute 25% of the price as cash at closing, which makes the principle loan amount $165,000. The note is interest only, with monthly payments, and is for 6 months at 10% interest with 4 origination points to be paid when the deal closes.
Accordingly, Lorrie will need to contribute a $55,000 down payment in addition to paying a $6,600 origination fee. Flourish Finance Group will collect $1,375 in monthly interest payments from the borrower. This is computed by taking the total note value of $165,000, multiplying that by the 10% interest rate, and then dividing that number by 12. If Lorrie sells the house for $308,000 after 6 months, she would earn a gross profit of $73,150 after deducting the original principle of $165,000, the funds paid at closing of $55,000, the origination points of $6,600, and the aggregate interest payments of $8,250. This gross profit doesn't account for building costs.
Green Square Lending issues a hard money loan to Rosalie for a remodeling project in Cashion, AZ. The loan includes the following:
$240,000 purchase price
55% loan to value (LTV)
6 month term
9% interest rate
2% origination fee
Once the rehab project is complete, if Rosalie sells the property for $288,000, the outcome would be the following:
$288,000 sales price
- $132,000 principle on note (55% LTV)
- $108,000 cash paid at closing (45% on 55% LTV)
- $2,640 origination fee (2% of the $132,000 principle)
- $5,940 interest payments (6 months x 9% interest)
-----------------------
= $39,420 gross profit (doesn't 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!
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!
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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