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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!
Winterthur, DE has 50 lenders operating within the city. The mean amount for loans is $317,188. Rates on hard money loans issued to Winterthur investors average about 9.9%. The mean loan made in this city is 35 months in length. The average loan made in the city includes a 3.0 point origination charge. The typical loan-to-value offered for loans in Winterthur is 74%.
Wilma takes a private money loan from Perfect Funding Group in order to rehab a duplex to flip in Winterthur, DE. The price of the house is $360,000. The borrower will be required to contribute 35% of the purchase price in cash to the closing based on a 65% loan to value set by the lender. This makes the loan principle from Perfect Funding Group $234,000. The parameters of the deal also include a five point origination fee which will be paid at the closing and a 18 month, interest only note with a 8% rate of interest.
Wilma will need to bring $126,000 to the closing (35% on the 65% LTV), plus she will need to pay the $11,700 origination fee. After the loan is executed and Wilma takes over the property, she will begin making payments each month of $1,560 to Perfect Funding Group ($234,000 principle x 8% / 12 months). Assuming Wilma sells the rehabed project for $450,000 at the end of the 18 month term, her gross profit (not including rehab costs) would be $50,220. This is calculated by taking the sales price ($450,000) and subtracting the original note amount ($234,000), the origination fee ($11,700), the money she brought to closing ($126,000), and the total interest payments ($28,080).
Earl is a an investor in Winterthur, DE. He finds an older townhouse for a remodeling project and obtains a private money loan from East End Funding Group with the following terms:
$160,000 purchase price
55% loan to value (LTV)
12 month term
9% rate of interest
3% origination fee
If Earl accomplishes his goal of a $192,000 sales price, the numbers of the deal would be the following:
$192,000 sales price
- $88,000 principle (55% LTV)
- $72,000 down payment (45% on 55% LTV)
- $2,640 origination points (3% of the $88,000 principle amount)
- $7,920 total interest paid (12 months x 9% interest)
-----------------------
= $21,440 gross profit (doesn't 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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