Bridge Loans in ,
Elon, NC has 45 private money lenders operating in the city. The average note made is around $427,143. The average rate for private loans in Elon is 10.5%. The average loan made in the city is for 20 months. The mean origination for loans is 3.3 percent. Lenders offer on average a 69% loan-to-value (LTV) on hard money loans in Elon.
Loan Example 1
Jeffery takes a private money bridge loan from Axis Investments in order to renovate a townhouse to flip in Elon, NC. The list price of the property is $170,000. The lender agrees to write a note with a 70% loan to value (LTV) so they will loan $119,000 on the property. The parameters of the deal also include a three percent origination fee which will be paid at closing and a 12 month, interest-only note with a 10% interest rate.
In accordance with the parameters of the deal, Jeffery will have to contribute a $3,570 origination fee plus 30% of the sales price, or $51,000, based on the 70% LTV. Axis Investments will collect $992 in monthly interest from the Jeffery . This is calculated by taking the full loan amount of $119,000, multiplying by the 10% interest rate, and then dividing that amount by 12. If Jeffery meets his goal of a $238,000 total sales price when the loan term expires, he would pocket a gross profit of $52,530 after re-paying the principle on the note and deducting the money he contributed at closing, the origination fee, and the monthly interest payments.
Loan Example 2
Delia is a an investor in Elon, NC. She purchases an older house for a renovation project and takes out a hard money bridge loan from GJ Finance Group with the following features:
$320,000 sales price
65% loan-to-value (LTV)
18 month term
8% interest rate
3% origination fee
Delia intends to list the house at the end of the term for $384,000. If she succeeds, the outcome will be the following:
$384,000 sales price
- $208,000 principle (65% LTV)
- $112,000 down payment (35% on 65% LTV)
- $6,240 origination fee (3% of the $208,000 principle amount)
- $24,960 total interest paid (18 months x 8% interest)
= $32,800 total profit (does not include taxes or rehab costs)