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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!
Hampstead, NH has 50 hard money lenders serving the city. The median amount for loans in this city is $350,000. Interest rates for loans average around 11.6%. The median length for loans is 15 months. The average note includes a 2.8 point origination cost. The typical loan to value for loans in Hampstead is 74%.
Greg is a real estate investor in Hampstead, NH. He discovers a run-down property for sale and decides to renovate it and re-sell it for a profit. The property has a cost of $190,000 but he does not have the full amount so he takes out a hard money loan with Big Lake Funding Corporation. Because the lender sets a 75% loan to value, Greg will be required to put 25% down so the total amount of the note will be $142,500. The note is interest only, with monthly payments, and is for 18 months at 10% interest with 5 origination points paid at closing.
In accordance with the parameters of the loan, Greg will be required to pay a $7,125 origination fee plus 25% of the purchase price, or $47,500, since there is a 75% LTV. he must then pay $1,188 monthly to Big Lake Funding Corporation. At the expiration of the loan, he sells the renovated property for $237,500. After deducting the $21,375 in total interest payments ($1,188 multiplied times 18 months), the $7,125 origination fee, the $142,500 principle on the loan, and the $47,500 he brought to the closing, he will earn a gross profit of $19,000 ($237,500 sales price minus $218,500 in total costs). This profit would be reduced by any building costs paid by the borrow.
Kristie is a real estate investor in Hampstead, NH. She buys a run-down property for a rehab project and takes out a private money loan from All American Funding Corporation with the following features:
$360,000 sales price
80% loan to value (LTV)
6 month term
13% rate of interest
2% origination fee
If Kristie achieves her goal of a $432,000 sales price, the numbers of the project will be the following:
$432,000 sales price
- $288,000 principle on note (80% LTV)
- $72,000 down payment (20% on 80% LTV)
- $5,760 origination points (2% of the $288,000 principle)
- $18,720 interest payments (6 months x 13% interest)
-----------------------
= $47,520 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!
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