Hard Money Loans in Dallas, Texas
Dallas, TX has 50 hard money lenders in the city. Note amounts average around $287,912. Interest rates for loans average about 12.5%. The typical loan made in the city is for 39 months. The mean points added to the loans is 3.6%. The mean loan to value for loans in Dallas is 71%.
Loan Example 1
Joseph closes on a $260,000 renovation project in the Arts District subdivision of Dallas, TX, using a private money loan from Friendly Funding . The borrower will need to bring 25% of the purchase price in cash to closing based on a 75% loan to value set by the lender. This makes the principle note from Friendly Funding $195,000. The note is interest-only, with monthly payments, and is for 18 months at 9% interest with 2 points paid when the deal closes.
On top of the $3,900 origination fee, Joseph will also fund $65,000 of the purchase with his own cash, or 25% of the purchase price. The lender will collect $1,463 in monthly interest from the Joseph . This is calculated by taking the total note amount of $195,000, multiplying that by the 9% interest rate, and then dividing that number by 12. If Joseph sells the remodeled house for $377,000 at the end of the 18 month term, his total profit (not including remodeling expenses) would be $86,775. This is calculated by taking the purchase price ($377,000) and subtracting the original note amount ($195,000), the origination fee ($3,900), the cash he contributed to closing ($65,000), and the total interest payments ($26,325).
Loan Example 2
Bruce takes out a hard money loan from North Shore Funding Group so he can remodel a townhome to resell in the West End Historic District area of Dallas, TX. The loan has the following terms:
a) A $210,000 sales price, b) a 50% loan to value (LTV), c) a 18 month term, d) a 8% interest rate, and e) a 4% origination fee.
Based on a $283,500 sales price at the end of the 18 month term, the final numbers for the deal would look like the following:
$283,500 sales price
- $105,000 note principle (50% LTV)
- $105,000 down payment (50% on 50% LTV)
- $4,200 origination points (4% of the $105,000 principle)
- $12,600 interest payments (18 months x 8% interest)
= $56,700 total profit (doesn't include taxes or renovation costs)