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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!
Middle River, MD has 50 hard money lenders operating within the city. The mean note amount is $288,462. Rates on hard money loans made to Middle River borrowers average about 11.1%. The average term for notes is 15 months. The mean origination fee for loans is 3.8 points. Lenders offer on average a 68% loan-to-value on hard money loans in Middle River.
Cory is an investor in Middle River, MD. He finds an older property and decides to remodel it and re-sell it for a profit. The house costs $360,000 but he does not have the full amount so he takes a hard money loan with West End Lending Corporation. The loan to value (LTV) on the note is 50%. This means Cory will have to bring 50% of the sales price to closing and the principle amount will be $180,000 on the deal. The deal also consists of these features: 1) a 12 month length, 2) a 11% interest only note, and 3) a one percent origination charge.
On top of the $1,800 origination fee, Cory will also have to fund $180,000 of the purchase with his own money, or 50% of the sales price. Once the deal is executed and Cory takes the project, he will begin making monthly payments of $1,650 to the lender ($180,000 principle x 11% / 12 months). If he sells the rehabed project for $540,000 at the end of the 12 month term, his gross profit (not accounting for rehab expenses) would be $158,400. This is calculated by taking the purchase price ($540,000) and subtracting the original principle ($180,000), the origination fee ($1,800), the money he contributed to closing ($180,000), and the total interest payments ($19,800).
Victor is a real estate investor in Middle River, MD. He buys an older townhouse for a rehab project and takes out a hard money loan from Brown Lending Group with the following features:
$240,000 purchase price
65% loan-to-value (LTV)
12 month term
8% interest rate
2% origination fee
Victor plans to sell the project at the end of the term for $348,000. If he succeeds, the final numbers would be as follows:
$348,000 sales price
- $156,000 principle on note (65% LTV)
- $84,000 down payment (35% on 65% LTV)
- $3,120 origination fee (2% of the $156,000 principle amount)
- $12,480 interest payments (12 months x 8% interest)
-----------------------
= $92,400 total profit (does not 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!
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