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Offering Fix and Flip, Bridge, and DSCR loans. With same day approvals, 3-5 day close time, and lending in 47 states, Park Place Finance will get your next deal funded fast!
There are 46 records for private money lenders operating in Paragould, AR. The average note made is about $291,072. Interest rates for loans average about 11.0%. The average length for loans is 20 months. The mean note includes a 3.4 point origination fee. 79% is the median loan to value for for loans in Paragould.
Shawn takes a hard money loan from Big City Lending Group in order to remodel a house to flip in Paragould, AR. The price of the property is $290,000. The terms of the note include a 60% loan-to-value (LTV), so he must bring 40% of the price as cash at closing, which makes the principle note amount $174,000. The loan also consists of the following features: 1) a 18 month term, 2) a 12% interest only note, and 3) a one percent origination charge.
Accordingly, Shawn will need to make a $116,000 down payment in addition to paying a $1,740 origination fee. The monthly interest only payments will then total $1,740 to the lender. At the end of the note, he sells the rehabed property for $391,500. After subtracting the $31,320 in total interest payments ($1,740 multiplied by 18 months), the $1,740 origination fee, the $174,000 principle amount on the note, and the $116,000 he contributed to closing, he will make a total profit of $68,440 ($391,500 price minus $323,060 in total costs). This profit would be reduced by any renovation costs paid by Shawn.
Barbra is a real estate investor in Paragould, AR. She buys a run-down property for a remodeling project and takes a private money loan from Hometown Investments with the following terms:
$390,000 sales price
55% loan-to-value (LTV)
6 month term
9% interest rate
1% origination fee
Assuming a $585,000 sales price after the 6 month term, the outcome for the project would look like the following:
$585,000 sales price
- $214,500 loan principle (55% LTV)
- $175,500 cash paid at closing (45% on 55% LTV)
- $2,145 origination fee (1% of the $214,500 principle amount)
- $9,653 total interest paid (6 months x 9% interest)
-----------------------
= $183,203 gross profit (doesn't include taxes or renovation costs)
Offering Fix and Flip, Bridge, and DSCR loans. With same day approvals, 3-5 day close time, and lending in 47 states, Park Place Finance will get your next deal funded fast!
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