Jim Mischner

About Jim Mischner

Jim Mischner is a Lexington, KY based private money lender offering loans throughout Lexington and Richmond. They provide loans for a variety of scenarios, including loans for rental properties, cash out hard money loans, and fix and flip loans. They issue loan amounts ranging from $20,000 to $4,000,000. They primarily offer loans for single family.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans, Refinance / Cash Out Loans

Property Types Covered: Single Family

Areas Served: Lexington, Richmond

Lending Guidelines for Jim Mischner

Below are the general loan guidelines published on the Jim Mischner website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Jim Mischner.

Loan Example 1

Cristina is a house flipper in Lexington, KY. She finds a run-down property for sale and wants to renovate it and sell it for a profit. The house has a cost of $170,000 but she does not have the full amount so she obtains a private money loan with Jim Mischner. The borrower will have to bring 15% of the sales price in cash to closing based on a 85% loan-to-value stipulated by the lending company. This makes the principle amount from Jim Mischner $144,500. The interest rate on the note is 11% for a length of 12 months and the lender requires a one point origination fee at closing. The interest is to be paid on a monthly basis and the principle will be returned after the sale of the property.

According to the parameters of the deal, Cristina will be required to pay a $1,445 origination fee plus 15% of the sales price, or $25,500, based on the 85% LTV. The monthly interest-only payments will then be $1,325 to the lender. Assuming Cristina sells the rehabed project for $255,000 at the end of the 12 month term, her gross profit (not accounting for rehab expenses) would be $67,660. This is computed by taking the purchase price ($255,000) and subtracting the original note amount ($144,500), the origination fee ($1,445), the funds she contributed to closing ($25,500), and the total interest expenses ($15,895).

Loan Example 2

Connie is a an investor in Lexington, KY. She purchases a run-down house for a rehab project and takes a fix and flip loan from Jim Mischner with the following terms:

a) A $290,000 purchase price, b) a 60% loan to value (LTV), c) a 18 month term, d) a 10% interest rate, and e) a 5% origination fee.

Connie plans to sell the house at the end of the term for $362,500. If she achieves this goal, the deal numbers will be the following:

$362,500 sales price
- $174,000 principle (60% LTV)
- $116,000 cash paid at closing (40% on 60% LTV)
- $8,700 origination fee (5% of the $174,000 principle amount)
- $26,100 total interest paid (18 months x 10% interest)
-----------------------
= $37,700 total profit (doesn't include taxes or renovation costs)

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