Bridge Loans in ,
A total of 35 results for private money bridge lenders were found in Portland, TN. In this city, the average note amount is $290,313. Rates on private loans issued to Portland borrowers average about 11.2%. 15 months is the average term for loans issued in this city. The average origination fee for loans is 3.0 points. The typical LTV offered for loans in Portland is 74%.
Loan Example 1
Andrea closes on a $200,000 rehab project in Portland, TN, using a private money bridge loan from Green Fern Finance Group . The borrower will be required to contribute 45% of the sales price in cash to the closing based on a 55% loan to value stipulated by the lender. This makes the principle note from Green Fern Finance Group $110,000. The loan also consists of the following features: 1) a 12 month length, 2) a 9% interest only note, and 3) a one point origination fee.
On top of the $1,100 origination fee, Andrea will also fund $90,000 of the purchase with her own funds, or 45% of the sales price. The lender will collect $825 in monthly interest from the Andrea . This is calculated by taking the total note value of $110,000, multiplying that by the 9% rate of interest, and then dividing that number by 12. If Andrea sells the renovated project for $250,000 at the end of the 12 month term, her gross profit (not including remodeling expenses) would be $39,000. This is calculated by taking the purchase price ($250,000) and subtracting the original principle ($110,000), the origination fee ($1,100), the funds she brought to closing ($90,000), and the total interest expenses ($9,900).
Loan Example 2
East Star Investment Corporation issues a hard money bridge loan to Alberto for a rehab project in Portland, TN. The loan dictates the following:
$300,000 purchase price
85% loan-to-value (LTV)
6 month term
12% interest rate
5% origination fee
Alberto plans to list the project when the note expires for $450,000. If he achieves this goal, the deal numbers will be as follows:
$450,000 sales price
- $255,000 note principle (85% LTV)
- $45,000 cash paid at closing (15% on 85% LTV)
- $12,750 origination fee (5% of the $255,000 principle)
- $15,300 interest payments (6 months x 12% interest)
= $121,950 gross profit (doesn't include taxes or renovation costs)