South Dakota Fix and Flip Loans
A total of 3 search results for fix and flip hard money lenders were found in South Dakota. The median loan made to borrowers is around $424,353. Interest rates on private loans made to South Dakota borrowers average around 11.1%. 28 months is the median length for loans offered in this state. The average hard money loan made in this state carries a 4.0 point origination cost. Lenders offer on average a 74% loan to value on hard money loans in South Dakota.
Loan Example 1
Elsie is a house flipper in Sioux Falls, SD. She locates an older property and decides to rehab it and flip it for a profit. The property has a cost of $280,000 but she doesn't have the full amount so she takes a private money loan with River City Investment Company . The lender agrees to write a loan with a 75% loan to value (LTV) so they are willing to extend $210,000 on the project. The parameters of the loan dictate a 8% note for 6 months. They also stipulate a 1 point origination fee, that will also be paid upon closing.
On top of the $2,100 origination fee, Elsie will also have to fund $70,000 of the purchase with her own cash, or 25% of the sales price. River City Investment Company will collect $1,400 in monthly interest from the borrower. This is computed by taking the total note amount of $210,000, multiplying by the 8% rate of interest, and then dividing that number by 12. At the expiration of the loan, she sells the rehabed property for $406,000. After deducting the $8,400 in interest payments ($1,400 times 6 months), the $2,100 origination fee, the $210,000 principle amount on the loan, and the $70,000 she brought to closing, she will make a total profit of $115,500 ($406,000 price minus $290,500 in costs). This profit would then be reduced by any building costs paid by the borrow.
Loan Example 2
P & J Finance Group issues a fix and flip loan to Pedro for a renovation project in Rapid City, SD. The loan includes the following:
a) A $160,000 sales price, b) a 70% loan-to-value (LTV), c) a 6 month term, d) a 11% interest rate, and e) a 2% origination fee.
If Pedro accomplishes his goal of a $208,000 sales price, the final numbers of the deal will be as follows:
$208,000 sales price
- $112,000 loan principle (70% LTV)
- $48,000 cash paid at closing (30% on 70% LTV)
- $2,240 origination points (2% of the $112,000 principle)
- $6,160 interest payments (6 months x 11% interest)
= $39,600 gross profit (doesn't include taxes or renovation 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 ...
American Land and Capital is a Lakeville, MN based hard money lender. They offer loans in Minnesota, Wisconsin, North Dakota, South Dakota, Iowa, and Nebraska. They offer builder loans and fix and flip loans. ...
Based in Great Neck, NY, National Advance Group is an asset-based lender providing loans in 50 states across the United States. They offer lending solutions for a variety of scenarios, including commercial hard money loans and fix-and-flip hard money ...