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Hard Money Loans in Frisco, Texas

A total of 50 search results for hard money lenders were found in Frisco, TX. The mean note amount in the city is $365,000. Rates on hard money loans made to Frisco borrowers average about 10.1%. The typical note issued in the city is 25 months in length. The average origination fee for the loans is 2.8 points. Lenders in Frisco average a 72% loan-to-value on their loans.

Loan Example 1

North Side Finance Company makes a private money loan to Rosemarie for a renovation project in Frisco, TX, on a property that costs $260,000. The loan-to-value (LTV) on the note is 70%. This means that Rosemarie will bring 30% of the purchase price to closing and the principle amount will be $182,000 on the deal. The parameters of the deal also stipulate a three percent origination fee which will be paid at closing and a 12 month, interest-only note with a 13% interest rate.

In addition to paying the $5,460 origination fee, Rosemarie will also fund $78,000 of the purchase with her own money, or 30% of the purchase price. North Side Finance Company will collect $1,972 in monthly interest from the borrower. This is computed by taking the total note amount of $182,000, multiplying by the 13% interest rate, and then dividing that number by 12. If Rosemarie achieves her goal of a $351,000 total sales price at the end of the loan term, she would make a gross profit of $61,880 after re-paying the principle and deducting the cash she brought to closing, the origination fee, and the total monthly interest payments.

Loan Example 2

Dustin is a real estate investor in Frisco, TX. He purchases a run-down property for a renovation project and takes a private money loan from Downtown Finance Group with the following terms:

$340,000 purchase price
55% loan to value (LTV)
6 month term
11% rate of interest
4% origination fee

Assuming a $442,000 sales price at the end of the 6 month term, the numbers for this deal would look like this:

$442,000 sales price
- $187,000 principle (55% LTV)
- $153,000 cash paid at closing (45% on 55% LTV)
- $7,480 origination points (4% of the $187,000 principle amount)
- $10,285 total interest paid (6 months x 11% interest)
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= $84,235 gross profit (does not include taxes or rehab costs)

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