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Hard Money Loans in Boca Raton, Florida

Boca Raton, FL has 50 private money lenders operating in the city. The median amount for loans in the city is $319,559. Rates for private loans average around 12.2%. The typical length offered for notes is 25 months. The mean note includes a 2.6 point origination charge. The median loan-to-value offered for loans in Boca Raton is 71%.

Loan Example 1

Katie is a house flipper in Boca Raton, FL. She discovers an older property in the Hamptons at Boca Raton subdivision and decides to renovate it and re-sell it for a profit. The house has a cost of $210,000 but she does not have the full amount so she takes out a hard money loan with Oceanside Funding . The terms of the deal include a 50% loan to value (LTV), so she must contribute 50% of the price as cash at closing, which makes the principle note amount $105,000. The rate on the loan is 13% for a term of 18 months and the company requires a four point origination fee at closing. The interest is to be paid monthly and the principle will be paid back after the property sells.

Katie will need to contribute $105,000 to the closing (50% on the 50% loan-to-value), plus she will need to pay the $4,200 origination fee. she must then pay $1,138 per month to Oceanside Funding . If Katie sells the project for $273,000 after 18 months, she would realize a total profit of $38,325 after subtracting the principle amount of $105,000, the cash paid at closing of $105,000, the origination points of $4,200, and the total interest payments of $20,475. This gross profit does not include remodeling costs.

Loan Example 2

Sabrina is a real estate investor in the Hamptons at Boca Raton subdivision of Boca Raton, FL. She buys a run-down townhouse for a rehab project and takes a private money loan from South Star Investment Corporation with the following terms:

$340,000 purchase price
75% loan to value (LTV)
6 month term
14% interest rate
4% origination fee

Sabrina intends to sell the project when the note expires for $425,000. If she accomplishes her goal, the outcome will be as follows:

$425,000 sales price
- $255,000 principle (75% LTV)
- $85,000 down payment (25% on 75% LTV)
- $10,200 origination fee (4% of the $255,000 principle amount)
- $17,850 total interest paid (6 months x 14% interest)
-----------------------
= $56,950 total profit (doesn't include taxes or renovation costs)

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Insource Funding

931 Village Blvd #905

West Palm Beach, FL 33409

(800) 805-3391 Visit Website

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Headquartered in West Palm Beach, FL, Insource Funding is a private lender offering loans throughout South Florida. They provide lending solutions for many different situations, including private refinancing, commercial hard money loans, fix-and-flip hard money loans, and short ...

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