Fix and Flip Loans in ,
There are 50 results for fix-and-flip hard money lenders operating in Jacksonville, FL. The average amount loaned is $311,072. The average interest rate for loans in Jacksonville is 11.6%. The median term offered for loans is 21 months. The mean note includes a 3.5 percent origination charge. 72% is the typical loan to value (LTV) offered for offered by lenders in Jacksonville.
Loan Example 1
Amelia is a house flipper in Jacksonville, FL. She finds an older property for sale in the Phoenix subdivision and wants to remodel it and resell it for a profit. The property costs $310,000 but she doesn't have the full amount so she obtains a fix-and-flip loan with Investors Lending Company . The borrower will be required to bring 15% of the sales price in cash to closing based on a 85% loan-to-value stipulated by the lender. This makes the loan principle from Investors Lending Company $263,500. The rate on the loan is 10% for a term of 12 months and the company requires a five point origination fee at closing. The interest payments are to be paid on a monthly basis and the principle will be returned after the property sells.
In addition to paying the $13,175 origination fee, Amelia will also fund $46,500 of the purchase with her own cash, or 15% of the sales price. she will then pay $2,196 monthly to Investors Lending Company . Amelia 's plan is to finish the renovation within the 12 months and resell it for $434,000. If she succeeds she will earn a profit of $84,475 ($434,000 sales price - $263,500 principle amount - $46,500 funds brough to closing - $13,175 origination points - $26,350 in interest.
Loan Example 2
Patricia is a an investor in the Grand Park neighborhood of Jacksonville, FL. She purchases an older property for a remodeling project and takes out a fix and flip loan from Hometown Investment Group with the following paramters:
$180,000 purchase price
80% loan to value (LTV)
18 month term
13% rate of interest
1% origination fee
Patricia plans to list the house at the end of the term for $234,000. If she accomplishes her goal, the outcome would be the following:
$234,000 sales price
- $144,000 note principle (80% LTV)
- $36,000 down payment (20% on 80% LTV)
- $1,440 origination fee (1% of the $144,000 principle amount)
- $28,080 interest payments (18 months x 13% interest)
= $24,480 gross profit (doesn't include taxes or rehab costs)