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There are 50 lenders offering loans in Narberth, PA. The average note issued is approximately $280,000. The average interest rate for hard money loans in Narberth is 15.6%. The typical note issued in this city has a term of 10 months. The average loan issued in this city carries a 3.5 point origination fee. Lenders offer on average a 75% loan-to-value on deals in Narberth.
Raymond takes a loan from Capable Lending in order to renovate a property to flip in the Roxborough Park area of Narberth, PA. The sales price of the house is $200,000. Because the lender sets a 65% loan to value, Raymond will be required to put 35% down so the total amount of the note will be $130,000. The parameters of the deal dictate a 8% note for 6 months. They also stipulate a 2 point origination fee, which will also need to be paid when the property closes.
In accordance with the terms of the loan, Raymond will need to contribute a $2,600 origination fee plus 35% of the sales price, or $70,000, since there is a 65% LTV. he must then pay $867 per month to the lender. If he sells the renovated house for $250,000 at the end of the 6 month term, his gross profit (not accounting for remodeling costs) would be $42,200. This is computed by taking the purchase price ($250,000) and subtracting the principle ($130,000), the origination cost ($2,600), the cash he brought to closing ($70,000), and the total interest expenses ($5,200).
Acme Investment Corporation issues a loan to Helene for a rehab project in the Roxborough Park neighborhood of Narberth, PA. The loan dictates the following:
$380,000 sales price
60% loan to value (LTV)
18 month term
11% interest rate
5% origination fee
Once the rehab project is complete, if Helene sells the property for $513,000, the final numbers would be as follows:
$513,000 sales price
- $228,000 note principle (60% LTV)
- $152,000 cash paid at closing (40% on 60% LTV)
- $11,400 origination fee (5% of the $228,000 principle amount)
- $37,620 total interest paid (18 months x 11% interest)
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= $83,980 total profit (doesn't include taxes or renovation costs)
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(212) 634-7899 - Loan Fundr a premier Nationwide asset-based lender using technology to close loans fast. We think creatively, providing fair and transparent loans that get our clients what they need.
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