Wasatch Private Money

About Wasatch Private Money

Based in Bluffdale, UT, Wasatch Private Money is a private money lender providing funding throughout Utah. Their focus is mainly on hard money bridge loans. Their lending parameters are versatile, including terms between 1 month and 6 months. The focus of their lending is for single family units and multi family.

Loan Types Offered: Bridge Loans

Property Types Covered: Single Family, Multi Family

Areas Served: UT

Lending Guidelines for Wasatch Private Money

Below are the general loan guidelines published on the Wasatch Private Money 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 Wasatch Private Money.

Loan Example 1

Wasatch Private Money issues a loan to Sam for a rehab project in Salt Lake City, UT, on a house that is listed for $220,000. The lender agrees to write a loan with a 60% loan to value (LTV) so they are willing to loan $132,000 on the project. The interest rate on the loan is 11% for a length of 18 months and the lender requires a three 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.

The borrower will need to bring a total of $32,400 up front to cover the $88,000 down payment plus the $3,960 origination fee. The monthly interest only payments will then be $1,210 to the lender. If Sam sells the property for $275,000 after 18 months, he would then make a gross profit of $29,260 after deducting the principle amount of $132,000, the money paid at closing of $88,000, the origination points of $3,960, and the aggregate interest payments of $21,780. This profit does not account for rehab costs.

Loan Example 2

Elinor locates a townhouse in Salt Lake City, UT to remodel and re-sell. Because she does not have enough cash to buy the property outright, she takes a private money bridge loan from Wasatch Private Money with the following parameters:

a) A $220,000 purchase price, b) a 50% loan to value (LTV), c) a 12 month term, d) a 12% interest rate, and e) a 4% origination fee.

If Elinor achieves her goal of a $264,000 sales price, the outcome of the deal will be as follows:

$264,000 sales price
- $110,000 note principle (50% LTV)
- $110,000 down payment (50% on 50% LTV)
- $4,400 origination points (4% of the $110,000 principle amount)
- $13,200 interest payments (12 months x 12% interest)
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= $26,400 total profit (doesn't include taxes or renovation costs)

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