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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!
Rollingbay, WA has 50 hard money lenders offering loans in the city. The mean amount loaned is $279,167. Interest rates on loans made to Rollingbay borrowers average about 10.8%. 36 months is the mean term for notes issued in the city. The average loan includes a 3.2 point origination cost. The mean loan to value for loans in Rollingbay is 79%.
Frederick is an investor in Rollingbay, WA. He locates an older property for sale and decides to rehab it and resell it for a profit. The property has a cost of $260,000 but he doesn't have the full amount so he takes a hard money loan with West End Funding Company. The lender agrees to issue a loan with a 70% loan to value (LTV) so they will loan $182,000 on the property. The parameters of the note also include a two point origination fee which will be paid at closing and a 6 month, interest-only note with a 14% interest rate.
Frederick will need to bring $78,000 to the closing (30% on the 70% loan to value), plus he will have to pay the $3,640 origination fee. After the loan closes, he will have to pay West End Funding Company $2,123 in monthly interest fees, or 14% times $182,000 divided by 12 months in the year. Assuming Frederick sells the rehabed project for $377,000 at the end of the 6 month term, his total profit (not including rehab expenses) would be $100,620. This is computed by taking the purchase price ($377,000) and subtracting the principle ($182,000), the origination cost ($3,640), the money he contributed to closing ($78,000), and the total interest expenses ($12,740).
Kent takes a private money loan from North Shore Lending Group in order to rehab a townhome to re-sell in Rollingbay, WA. The deal has the following parameters:
$300,000 sales price
75% loan-to-value (LTV)
18 month term
10% rate of interest
2% origination fee
Kent intends to sell the property when the note expires for $435,000. If he accomplishes his goal, the deal numbers will be the following:
$435,000 sales price
- $225,000 loan principle (75% LTV)
- $75,000 down payment (25% on 75% LTV)
- $4,500 origination points (2% of the $225,000 principle amount)
- $33,750 interest payments (18 months x 10% interest)
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= $96,750 gross profit (does not include taxes or renovation 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!
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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