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Hard Money Loans in Hollywood, Florida

There are 50 private money lenders operating in Hollywood, FL. The median note issued to borrowers is about $331,857. Rates on private loans issued to Hollywood investors average 12.2%. 25 months is the median length for loans made in this city. The mean note includes a 2.6 percent origination cost. The median loan to value (LTV) offered for loans in Hollywood is 71%.

Loan Example 1

Tom closes on a $310,000 renovation project in the Driftwood neighborhood of Hollywood, FL, using a private money loan from Assurance Investments . The borrower will have to fund 35% of the sales price in cash to the closing based on a 65% loan-to-value set by the lending company. This makes the loan principle from Assurance Investments $201,500. The terms of the loan dictate a 13% note for 12 months. They also require a 1 point origination fee, that will also need to be paid at closing.

On top of the $2,015 origination fee, Tom will also need to fund $108,500 of the purchase with his own cash, or 35% of the sales price. After the deal is closed and Tom takes over the project, he will begin making payments each month of $2,183 to Assurance Investments ($201,500 principle x 13% / 12 months). If Tom sells the project for $372,000 after 12 months, he would then make a total profit of $33,790 after deducting the original principle of $201,500, the cash paid at the close of $108,500, the origination points of $2,015, and the aggregate interest payments of $26,195. This profit doesn't include remodeling costs.

Loan Example 2

Francisco takes a loan from Prosper Lending Company in order to remodel a house to flip in the Driftwood subdivision of Hollywood, FL. The loan has the following terms:

a) A $380,000 purchase price, b) a 65% loan-to-value (LTV), c) a 18 month term, d) a 10% interest rate, and e) a 3% origination fee.

Assuming a $494,000 sales price after the 18 month term, the final numbers for this project would look like the following:

$494,000 sales price
- $247,000 principle (65% LTV)
- $133,000 down payment (35% on 65% LTV)
- $7,410 origination fee (3% of the $247,000 principle)
- $37,050 total interest paid (18 months x 10% interest)
-----------------------
= $69,540 total profit (does not include taxes or rehab 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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