
Global Capital Partners Fund is a Direct Bridge & Hard Money Lender with over 30 years of experience. Specializing in Commercial loans, Adaptive Re-use & Construction lines of credit nationwide!
Randallstown, MD has 50 lenders operating within the city. The average loan made to borrowers is around $309,375. Interest rates for hard money loans average around 11.1%. 14 months is the average term for loans issued in this city. The average loan includes a 3.5 point origination fee. Lenders typically offer a 69% loan to value (LTV) on loans in Randallstown.
XYZ Funding makes a private money loan to Alberta for a rehab project in Randallstown, MD, on a house that is listed for $290,000. The loan-to-value (LTV) on the loan is 85%. This means Alberta will bring 15% of the purchase price to closing and the principle amount will be $246,500 on the note. The terms of the note also include a five point origination fee that will be paid at closing and a 12 month, interest only note with a 9% interest rate.
According to the parameters of the loan, Alberta will need to pay a $12,325 origination fee in addition to 15% of the purchase price, or $43,500, since there is a 85% LTV. The monthly interest only payments will then be $1,849 to XYZ Funding. If Alberta meets her goal of a $435,000 sales price when the loan expires, she would earn a gross profit of $110,490 after repaying the principle amount and deducting the money she brought to closing, the origination points, and the total interest payments.
Rena takes out a loan from Yellow Sun Lending in order to renovate a townhome to resell in Randallstown, MD. The loan has the following parameters:
a) A $160,000 purchase price, b) a 55% loan to value (LTV), c) a 18 month term, d) a 12% interest rate, and e) a 5% origination fee.
If Rena accomplishes her goal of a $216,000 sales price, the outcome of the deal will be as follows:
$216,000 sales price
- $88,000 note principle (55% LTV)
- $72,000 down payment (45% on 55% LTV)
- $4,400 origination points (5% of the $88,000 principle)
- $15,840 interest payments (18 months x 12% interest)
-----------------------
= $35,760 gross profit (doesn't include taxes or rehab costs)
Global Capital Partners Fund is a Direct Bridge & Hard Money Lender with over 30 years of experience. Specializing in Commercial loans, Adaptive Re-use & Construction lines of credit nationwide!
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