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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!
Pepperell, MA has 50 private money lenders serving the city. In this city, the median amount for loans is $293,056. The median rate for hard money loans in Pepperell is 12.3%. 13 months is the median term for loans issued in the city. The average loan issued in this city includes a 3.5 point origination fee. Lenders in Pepperell average a 72% loan to value on their loans.
Teri takes a loan from Suburban Finance in order to remodel a property to flip in the East Pepperell neighborhood of Pepperell, MA. The list price of the property is $360,000. Because the lender sets a 60% loan-to-value, Teri will be required to put 40% down and the total amount of the note will be $216,000. The note is interest-only, paid monthly, and is for 12 months at 14% interest with 2 origination points paid at closing.
In addition to paying the $4,320 origination fee, Teri will also have to fund $144,000 of the purchase with her own cash, or 40% of the sales price. she must then pay $2,520 monthly to Suburban Finance. At the end of the loan, she sells the rehabed property for $486,000. After subtracting the $30,240 in interest expenses ($2,520 multiplied times 12 months), the $4,320 origination fee, the $216,000 principle amount on the loan, and the $144,000 she brought to closing, she will earn a gross profit of $91,440 ($486,000 price minus $394,560 in costs). This profit would be reduced by any renovation costs paid out of pocket.
Bessie is a real estate investor in the East Pepperell area of Pepperell, MA. She purchases a run-down townhouse for a rehab project and takes out a hard money loan from Coastal Funding Company with the following terms:
a) A $350,000 purchase price, b) a 60% loan to value (LTV), c) a 6 month term, d) a 10% interest rate, and e) a 2% origination fee.
Assuming a $420,000 sales price at the end of the 6 month term, the outcome for this deal would look like this:
$420,000 sales price
- $210,000 principle on note (60% LTV)
- $140,000 cash paid at closing (40% on 60% LTV)
- $4,200 origination points (2% of the $210,000 principle)
- $10,500 interest payments (6 months x 10% interest)
-----------------------
= $55,300 gross 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!
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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.
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