Fix and Flip Loans in ,
There are 50 fix and flip hard money lenders operating in Snyder, TX. The median amount loaned is $339,250. The median rate for loans in Snyder is 11.5%. The median loan issued in the city is 21 months in length. A typical loan made in this city includes a 3.1 point origination fee. Lenders typically offer a 75% LTV on hard money loans in Snyder.
Loan Example 1
Hope closes on a $150,000 renovation project in Snyder, TX, using a fix and flip loan from Brown Finance Group . The terms of the note include a 80% loan-to-value (LTV), so she must contribute 20% of the price as cash to closing, which makes the principle note amount $120,000. The rate on the loan is 11% for a term of 6 months and the company requires a four point origination fee at the close. The interest payments are to be paid on a monthly basis and the principle will be returned after the property sells.
Therefore, the borrower will be required to make a $30,000 down payment plus pay a $4,800 origination fee. Once the deal closes, she will pay Brown Finance Group $1,100 in monthly interest fees, or 11% multiplied times $120,000 divided by 12 months in a year. Assuming she sells the remodeled house for $210,000 at the end of the 6 month term, her gross profit (not accounting for rehab expenses) would be $48,600. This is calculated by taking the purchase price ($210,000) and subtracting the original note amount ($120,000), the origination cost ($4,800), the money she brought to closing ($30,000), and the total interest expenses ($6,600).
Loan Example 2
Sophie takes out a fix and flip loan from Red View Funding so she can renovate a house to re-sell in Snyder, TX. The deal has the following parameters:
a) A $180,000 purchase price, b) a 80% loan to value (LTV), c) a 18 month term, d) a 8% interest rate, and e) a 2% origination fee.
If Sophie succeeds in her goal of a $243,000 sales price, the final numbers of the deal will be as follows:
$243,000 sales price
- $144,000 principle (80% LTV)
- $36,000 cash paid at closing (20% on 80% LTV)
- $2,880 origination fee (2% of the $144,000 principle)
- $17,280 interest payments (18 months x 8% interest)
= $42,840 gross profit (doesn't include taxes or renovation costs)