Hard Money Loans in Phoenix, Arizona
Phoenix, AZ has 50 private money lenders offering loans in the city. In this city, the median note amount is $322,143. Rates on hard money loans issued to Phoenix investors average 13.0%. 21 months is the median term for notes issued in the city. The mean loan includes a 3.4 percent origination fee. The typical loan to value (LTV) for loans in Phoenix is 78%.
Loan Example 1
Patti is a house flipper in Phoenix, AZ. She locates an run-down property for sale in the Central City area and decides to remodel it and resell it for a profit. The property costs $320,000 but she doesn't have the full amount so she takes a hard money loan with Easy Brook Lending Group . The loan to value (LTV) on the deal is 55%. This means Patti will need to bring 45% of the sales price to the closing and the principle will be $176,000 on the note. The note is interest-only, paid monthly, and is for 18 months at 8% interest with 1 origination points to be paid at closing.
Patti will need to contribute $144,000 at closing (45% on the 55% LTV), plus she will have to pay the $1,760 origination fee. Once the deal closes, she will have to pay Easy Brook Lending Group $1,173 in monthly interest payments, or 8% times $176,000 divided by 12 months in a year. If Patti meets her goal of a $464,000 sales price when the loan term expires, she would earn a total profit of $121,120 after re-paying the principle on the note and subtracting the cash she contributed at closing, the origination fee, and the total monthly interest payments.
Loan Example 2
Dena takes a loan from Rising Sun Finance so she can rehab a townhouse to flip in the Alhambra subdivision of Phoenix, AZ. The deal has the following terms:
a) A $250,000 sales price, b) a 75% loan-to-value (LTV), c) a 12 month term, d) a 12% interest rate, and e) a 1% origination fee.
Once the renovation project is complete, if Dena sells the house for $350,000, the final numbers would be as follows:
$350,000 sales price
- $187,500 note principle (75% LTV)
- $62,500 cash paid at closing (25% on 75% LTV)
- $1,875 origination points (1% of the $187,500 principle)
- $22,500 interest payments (12 months x 12% interest)
= $75,625 gross profit (doesn't include taxes or renovation costs)