Bridge Loans in ,
We found 50 results for hard money bridge lenders offering loans in Ramona, CA. The average loan made is approximately $370,577. The average rate for private loans in Ramona is 10.1%. The average term offered for notes is 28 months. The mean origination for loans is 3.9 percent. Lenders in Ramona average a 74% LTV on their deals.
Loan Example 1
Jack takes a hard money bridge loan from Smith Lending Group in order to rehab a townhome to resale in the San Diego Country Estates area of Ramona, CA. The sales price of the property is $240,000. The borrower will be required to fund 20% of the purchase price in cash to closing based on a 80% loan-to-value set by the lender. This makes the principle amount from Smith Lending Group $192,000. The rate on the note is 11% for a term of 12 months and the lender requires a one point origination fee at closing. The interest is to be paid on a monthly basis and the principle will be repaid after the sale of the property.
According to the parameters of the deal, Jack will have to contribute a $1,920 origination fee in addition to 20% of the purchase price, or $48,000, based on the 80% LTV. Once the deal is closed and Jack takes on the property, he will need to begin making monthly payments of $1,760 to the lender ($192,000 principle x 11% / 12 months). If Jack sells the remodeled project for $324,000 at the end of the 12 month term, his total profit (not accounting for remodeling costs) would be $60,960. This is calculated by taking the purchase price ($324,000) and subtracting the original note amount ($192,000), the origination cost ($1,920), the funds he contributed to closing ($48,000), and the total interest expenses ($21,120).
Loan Example 2
Fortune Investments issues a bridge loan to Sean for a rehab project in the San Diego Country Estates neighborhood of Ramona, CA. The deal dictates the following:
$210,000 purchase price
50% loan to value (LTV)
12 month term
11% interest rate
3% origination fee
Based on a $283,500 sales price after the 12 month term, the outcome for this deal would look like the following:
$283,500 sales price
- $105,000 principle (50% LTV)
- $105,000 cash paid at closing (50% on 50% LTV)
- $3,150 origination points (3% of the $105,000 principle)
- $11,550 interest payments (12 months x 11% interest)
= $58,800 gross profit (does not include taxes or renovation costs)