North Dakota Bridge Loans
We found 1 records for private money bridge lenders offering loans in North Dakota. Note amounts average about $479,680. Rates on loans made to North Dakota borrowers average around 10.7%. The average note issued in this state has a length of 22 months. The average loan includes a 3.7 point origination cost. Lenders typically offer a 72% loan to value on loans in North Dakota.
Loan Example 1
Alex finds a duplex in Bismarck, ND to remodel and re-sell. Since he does not have enough cash on-hand to acquire the $260,000 house outright, he takes out a bridge loan from West Star Funding Corporation . The loan to value (LTV) on the note is 85%. This means Alex will need to bring 15% of the sales price to closing and the principle amount will be $221,000 on the note. The parameters of the loan dictate a 12% note for 6 months. They also stipulate a 2 point origination fee, that will also need to be paid when the property closes.
Accordingly, the borrower will be required to contribute a $39,000 down payment plus pay a $4,420 origination fee. West Star Funding Corporation will collect $2,210 in monthly interest from the borrower. This is calculated by taking the total loan amount of $221,000, multiplying by the 12% rate of interest, and then dividing that amount by 12. At the end of the loan, he sells the rehabed house for $312,000. After deducting the $13,260 in interest expenses ($2,210 times 6 months), the $4,420 origination fee, the $221,000 principle amount on the loan, and the $39,000 he brought to closing, he will make a total profit of $34,320 ($312,000 price minus $277,680 in costs). This profit would then be reduced by any rehab costs paid by the borrow.
Loan Example 2
Carlos finds a house in West Fargo, ND to renovate and sell. Since he does not have enough cash to buy the property outright, he takes a hard money bridge loan from West Shore Investment Corporation with the following parameters:
$180,000 sales price
85% loan-to-value (LTV)
6 month term
13% interest rate
5% origination fee
Based on a $234,000 sales price after the 6 month term, the numbers for this deal would look like the following:
$234,000 sales price
- $153,000 principle on note (85% LTV)
- $27,000 cash paid at closing (15% on 85% LTV)
- $7,650 origination points (5% of the $153,000 principle amount)
- $9,945 interest payments (6 months x 13% interest)
= $36,405 gross profit (does not include taxes or rehab costs)
Secured Investment Lending
1485 International Parkway, Suite 1031
Lake Mary, FL 32746
(407) 878-2830 Website
Secured Investment Lending is private lender headquartered in Lake Mary, FL. They provide funding in 49 states throughout the country. They provide lending solutions for a variety of scenarios, including short term bridge loans, commercial loans, cash ...