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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!
Chewsville, MD has 50 hard money lenders operating in the city. The mean loan issued to borrowers is approximately $275,000. Interest rates for private loans average about 11.0%. The mean loan issued in the city is 18 months in length. The mean loan includes a 3.2 percent origination cost. 76% is the median loan to value (LTV) offered for offered by lenders in Chewsville.
Gwendolyn closes on a $220,000 rehab project in the Chewsville subdivision of Chewsville, MD, using a private money loan from Evergreen Investment Group. The lender agrees to write a note with a 70% loan to value (LTV) so they are willing to loan $154,000 on the house. The parameters of the loan dictate a 11% note for 18 months. They also require a 4 point origination fee, which will also be paid upon closing.
By the parameters of the loan, Gwendolyn will have to pay a $6,160 origination fee plus 30% of the sales price, or $66,000, based on the 70% LTV. Once the deal closes, she will have to pay Evergreen Investment Group $1,412 in monthly interest fees, or 11% times $154,000 divided by 12 months in a year. Assuming Gwendolyn sells the renovated house for $308,000 at the end of the 18 month term, her gross profit (not including renovation expenses) would be $56,430. This is calculated by taking the sales price ($308,000) and subtracting the principle ($154,000), the origination fee ($6,160), the cash she brought to closing ($66,000), and the total interest expenses ($25,410).
Tony is a an investor in the Chewsville area of Chewsville, MD. He purchases a run-down property for a remodeling project and takes out a private money loan from All Star Investment Group with the following features:
$280,000 sales price
65% loan-to-value (LTV)
18 month term
11% interest rate
4% origination fee
Tony plans to list the property when the note expires for $378,000. If he succeeds, the deal numbers will be the following:
$378,000 sales price
- $182,000 principle on note (65% LTV)
- $98,000 down payment (35% on 65% LTV)
- $7,280 origination fee (4% of the $182,000 principle)
- $30,030 interest payments (18 months x 11% interest)
-----------------------
= $60,690 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!
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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