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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!
Butner, NC has 39 construction hard money lenders serving the city. The mean amount for loans in the city is $295,357. Rates on loans made to Butner investors average 11.6%. The median length for notes is 16 months. The mean origination for the loans is 3.0 points. The typical loan to value for loans in Butner is 73%.
Rae is a real estate investor and she wants to construct a single family home on a vacant lot in Butner, NC. Rae thinks the construction costs will be around $250,000 and the land costs $360,000. Green Fern Finance Group makes a 75% loan to value (LTV) construction loan to Rae in order to pay for the deal. They also agree to a 11% rate of interest for 12 months in addition to a 5 point origination fee. Construction costs will be paid out in draws and there will be no pre-payment penalties assessed. The borrower will need to pay $4,194 per month in note payments on top of $152,500 down, plus a $22,875 origination charge at the closing. If Rae sells the project for $730,000 she will pocket a total profit of $46,800 after paying pack the principle amount and deducting the origination fee and cumulative interest.
Estelle is an investor who decides to acquire a vacant lot in Butner, NC and build a house. To fund the project, she obtains a construction loan from Smith Finance with these specifications:
Assuming a $820,000 resell after the 6 month term, the numbers for this project would be as follows:
$820,000 sales price
- $495,000 loan principle (75% LTV)
- $165,000 cash paid at closing (25% on 75% LTV)
- $9,900 origination fee (2% of the $495,000 principle amount)
- $27,225 total interest paid (6 months x 11% interest)
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= $122,875 gross profit
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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Edward Voccola & Co is hard money lender based in Boston, MA. They provide funding all throughout the US. They provide lending solutions for a variety of scenarios, including builder loans, hard money bridge loans, and ...
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