Hard Money Loans in Cincinnati, Ohio
A total of 50 search results for hard money lenders were found in Cincinnati, OH. In this city, the average loan amount is $362,500. Interest rates for loans average about 11.6%. The median length offered for loans is 56 months. The average loan issued in this city carries a 3.0 point origination charge. Lenders in Cincinnati average a 77% LTV on their loans.
Loan Example 1
Melba is a real estate investor in Cincinnati, OH. She discovers an run-down property in the Winton Place neighborhood and decides to renovate it and re-sell it for a profit. The property costs $160,000 but she doesn't have the full amount so she obtains a private money loan with Pretty Perfect Finance . The terms of the note include a 50% loan-to-value (LTV), so she must contribute 50% of the price as cash at closing, which makes the principle loan amount $80,000. The loan also has the following features: 1) a 6 month length, 2) a 13% interest only note, and 3) a five point origination fee.
Therefore, Melba will be required to make a $80,000 down payment plus pay a $4,000 origination fee. After the loan is executed and Melba takes on the property, she will need to begin making monthly payments of $867 to Pretty Perfect Finance ($80,000 principle x 13% / 12 months). If she sells the renovated house for $216,000 at the end of the 6 month term, her gross profit (not including remodeling expenses) would be $46,800. This is calculated by taking the purchase price ($216,000) and subtracting the original note amount ($80,000), the origination fee ($4,000), the funds she contributed to closing ($80,000), and the total interest expenses ($5,200).
Loan Example 2
Lynda finds a duplex in the South Cumminsville subdivision of Cincinnati, OH to remodel and resell. Because she does not have enough cash to buy the property outright, she takes a hard money loan from Top Dog Lending Corporation with the following parameters:
a) A $190,000 purchase price, b) a 70% loan to value (LTV), c) a 18 month term, d) a 8% interest rate, and e) a 3% origination fee.
Based on a $237,500 sales price after the 18 month term, the outcome for this deal would look like this:
$237,500 sales price
- $133,000 note principle (70% LTV)
- $57,000 cash paid at closing (30% on 70% LTV)
- $3,990 origination points (3% of the $133,000 principle amount)
- $15,960 interest payments (18 months x 8% interest)
= $27,550 gross profit (does not include taxes or rehab costs)