About CBC Realty Investments
CBC Realty Investments is a Newburyport, MA based private lender offering loans throughout Boston. Their focus is mainly on fix-and-flip hard money loans. They issue terms between 6 months and 18 months, rates ranging between 8% and 10%, and loan amounts ranging from $200,000 to $3,000,000 with a maximum LTV of 80%. They primarily make funding on single family homes and multi-family units.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: Boston
Fix and Flip LoansLoan Amounts: $200,000 - $3,000,000
Available Rates: 8% - 10%
Typical Terms: 6 months - 18 months
Points Charged: 2% - 3%
Max Loan-to-Value (LTV): 80%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: YES
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: 1 Week
Loan Example 1
Bianca is a real estate investor in Boston, MA. She discovers a run-down property for sale and wants to rehab it and flip it for a profit. The house has a cost of $230,000 but she doesn't have the full amount so she takes a private money loan with CBC Realty Investments. As the lender agrees to a 50% loan-to-value, Bianca will have to put 50% down so the amount of the note will be $115,000. The terms of the loan also stipulate a four percent origination fee that is to be paid at the closing and a 6 month, interest only note with a 13% rate of interest.
Bianca will need to bring $115,000 at closing (50% on the 50% loan to value), plus she will pay the $4,600 origination fee. CBC Realty Investments will collect $1,246 in monthly interest payments from the Bianca . This is computed by taking the total note value of $115,000, multiplying that by the 13% rate of interest, and then dividing that amount by 12. Assuming Bianca sells the rehabed project for $276,000 at the end of the 6 month term, her total profit (not accounting for remodeling expenses) would be $33,925. This is computed by taking the purchase price ($276,000) and subtracting the principle ($115,000), the origination cost ($4,600), the cash she brought to closing ($115,000), and the total interest payments ($7,475).
Loan Example 2
Cherie locates a duplex in Boston, MA to rehab and sell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from CBC Realty Investments with the following parameters:
a) A $310,000 purchase price, b) a 65% loan-to-value (LTV), c) a 12 month term, d) a 9% interest rate, and e) a 2% origination fee.
After the renovation project is completed, if Cherie sells the house for $434,000, the final numbers would be the following:
$434,000 sales price
- $201,500 principle on note (65% LTV)
- $108,500 down payment (35% on 65% LTV)
- $4,030 origination points (2% of the $201,500 principle amount)
- $18,135 interest payments (12 months x 9% interest)
= $101,835 gross profit (does not include taxes or renovation costs)
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