Hard Money Loans in Las Vegas, Nevada
A total of 46 search results for private money lenders were found in Las Vegas, NV. Loan amounts average about $401,667. The mean rate for private loans in Las Vegas is 10.6%. The typical note issued in the city is for 21 months. The average loan includes a 2.9 percent origination cost. 75% is the average loan to value offered for offered by lenders in Las Vegas.
Loan Example 1
Terri takes a private money loan from Urban Lending Group in order to renovate a duplex to flip in the UMC neighborhood of Las Vegas, NV. The price of the property is $330,000. The terms of the note include a 70% loan to value (LTV), so she must contribute 30% of the price as cash at closing, making the principle loan amount $231,000. The loan is interest only, paid monthly, and is for 12 months at 13% interest with 2 origination points paid when the deal closes.
In accordance with the parameters of the note, Terri will need to pay a $4,620 origination fee in addition to 30% of the purchase price, or $99,000, since there is a 70% LTV. Once the loan closes, she will have to pay Urban Lending Group $2,503 in monthly interest fees, or 13% multiplied by $231,000 divided by 12 months in the year. At the expiration of the loan, she sells the rehabed property for $478,500. After subtracting the $30,030 in total interest payments ($2,503 multiplied by 12 months), the $4,620 origination fee, the $231,000 principle on the loan, and the $99,000 she brought to the closing, she will earn a total profit of $113,850 ($478,500 sales price minus $364,650 in total costs). This profit would be reduced by any renovation costs paid by the borrow.
Loan Example 2
Fair View Funding Group makes a hard money loan to Glen for a rehab project in the The Strip subdivision of Las Vegas, NV. The loan dictates the following:
$390,000 sales price
60% loan to value (LTV)
12 month term
12% rate of interest
1% origination fee
After the rehab project is finished, if Glen sells the property for $468,000, the numbers would be the following:
$468,000 sales price
- $234,000 loan principle (60% LTV)
- $156,000 down payment (40% on 60% LTV)
- $2,340 origination points (1% of the $234,000 principle)
- $28,080 total interest paid (12 months x 12% interest)
= $47,580 total profit (does not include taxes or rehab costs)