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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.
Girdwood, AK has 32 hard money lenders offering loans within the city. The median amount loaned is $282,500. The median interest rate for private loans in Girdwood is 10.4%. 19 months is the median length for notes issued in this city. The mean origination fee added to loans is 2.6%. Lenders typically offer a 72% loan-to-value on deals in Girdwood.
Pedro is a house flipper in Girdwood, AK. He discovers an run-down property for sale in the Portage Valley area and wants to remodel it and sell it for a profit. The house has a cost of $310,000 but he does not have the full amount so he takes a hard money loan with Flourish Finance Corporation. The loan to value (LTV) on the note is 75%. This means Pedro will bring 25% of the sales price to the closing and the principle amount will be $232,500 on the loan. The note is interest-only, with monthly payments, and is for 6 months at 11% interest with 5 origination points paid at closing.
Therefore, Pedro will be required to contribute a $77,500 down payment in addition to paying a $11,625 origination fee. Flourish Finance Corporation will collect $2,131 in monthly interest from the Pedro. This is computed by taking the full note amount of $232,500, multiplying that by the 11% rate of interest, and then dividing that amount by 12. If Pedro sells the house for $372,000 after 6 months, he would then make a total profit of $37,588 after deducting the original principle of $232,500, the funds contributed at the close of $77,500, the origination points of $11,625, and the total interest payments of $12,788. This gross profit does not account for rehab costs.
Rosalinda is a real estate investor in the Portage Valley subdivision of Girdwood, AK. She finds an older house for a rehab project and obtains a private money loan from Deep Lake Finance Company with the following terms:
$260,000 purchase price
50% loan-to-value (LTV)
12 month term
12% interest rate
5% origination fee
If Rosalinda achieves her goal of a $351,000 sales price, the numbers of the project would be as follows:
$351,000 sales price
- $130,000 principle (50% LTV)
- $130,000 down payment (50% on 50% LTV)
- $6,500 origination points (5% of the $130,000 principle)
- $15,600 total interest paid (12 months x 12% interest)
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= $68,900 total profit (does not include taxes or renovation costs)
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.
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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