About Finance One Asset Management
Finance One Asset Management is a Calabasas, CA based hard money lender who offers loans all throughout the United States. Their lending focus is mainly on short term fix and flip loans. They offer rates starting at 6% . The focus of their lending is on single family homes.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family
Areas Served: National
Fix and Flip LoansLoan Amounts: N/A
Available Rates: 6% and up
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): N/A
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: N/A
Loan Example 1
Trudy finds a townhouse in San Bernardino, CA to rehab and re-sell. Since she doesn't have enough cash available to purchase the $280,000 house outright, she decides to take out a fix-and-flip loan from Finance One Asset Management. The loan-to-value (LTV) on the note is 55%. This means Trudy will need to bring 45% of the sales price to the closing and the principle will be $154,000 on the note. The terms of the note also stipulate a four point origination fee that will be paid at the closing and a 6 month, interest-only note with a 10% interest rate.
Therefore, the borrower will have to contribute a $126,000 down payment in addition to paying a $6,160 origination fee. The monthly interest-only payments will then total $1,283 to the lender. If Trudy sells the renovated house for $378,000 at the end of the 6 month term, her total profit (not accounting for remodeling costs) would be $84,140. This is calculated by taking the sales price ($378,000) and subtracting the original note amount ($154,000), the origination fee ($6,160), the cash she brought to closing ($126,000), and the total interest expenses ($7,700).
Loan Example 2
Finance One Asset Management issues a loan to May for a renovation project in Atlanta, GA. The deal dictates the following:
a) A $400,000 sales price, b) a 80% loan to value (LTV), c) a 6 month term, d) a 9% interest rate, and e) a 4% origination fee.
May plans to list the project when the note expires for $600,000. If she achieves this goal, the outcome would be as follows:
$600,000 sales price
- $320,000 principle (80% LTV)
- $80,000 cash paid at closing (20% on 80% LTV)
- $12,800 origination fee (4% of the $320,000 principle amount)
- $14,400 interest payments (6 months x 9% interest)
= $172,800 gross profit (doesn't include taxes or rehab costs)
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