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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!
Weiner, AR has 46 hard money lenders serving the city. The median loan amount is $292,188. The median interest rate for private loans in Weiner is 11.0%. The typical term for loans is 45 months. The mean origination for the loans is 2.6 percent. Lenders offer on average a 78% loan to value (LTV) on deals in Weiner.
Melinda finds a house in Weiner, AR to renovate and re-sell. Since she doesn't have enough cash available to buy the $350,000 property outright, she decides to take out a private money loan from North Star Finance Group. The terms of the note include a 60% loan to value (LTV), so she must contribute 40% of the price as cash to closing, which makes the principle note amount $210,000. The parameters of the loan dictate a 12% note for 6 months. They also stipulate a 5 point origination fee, which will also be paid upon closing.
The borrower will have to fund a total of $32,400 up front to pay the $140,000 down payment in addition to the $10,500 origination fee. The lender will collect $2,100 in monthly interest payments from the borrower. This is calculated by taking the full loan value of $210,000, multiplying by the 12% rate of interest, and then dividing that number by 12. At the end of the note, she sells the rehabed property for $525,000. After subtracting the $12,600 in interest expenses ($2,100 multiplied times 6 months), the $10,500 origination fee, the $210,000 principle on the note, and the $140,000 she brought to the closing, she will make a total profit of $151,900 ($525,000 sales price minus $373,100 in costs). This amount would be reduced by any building costs paid out of pocket.
Shane takes out a loan from Hometown Finance Group in order to remodel a townhouse to resell in Weiner, AR. The loan has the following parameters:
$390,000 sales price
80% loan to value (LTV)
18 month term
11% interest rate
3% origination fee
After the renovation project is finished, if Shane sells the project for $546,000, the numbers would be the following:
$546,000 sales price
- $312,000 principle on note (80% LTV)
- $78,000 down payment (20% on 80% LTV)
- $9,360 origination fee (3% of the $312,000 principle amount)
- $51,480 total interest paid (18 months x 11% interest)
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= $95,160 total profit (doesn't 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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