About Hallmark Funding
Based in Atlanta, GA, Hallmark Funding is a hard money lender providing funding throughout Alabama, Georgia, Florida, Minnesota, South Carolina, Tennessee, and Wisconsin. Their focus is mainly on fix-and-flip loans. Their lending guidelines include a minimum FICO rating of 620. The focus of their loans is on single family units and multi-family.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: AL, GA, FL, MN, SC, TN, WI
Fix and Flip LoansLoan Amounts: N/A
Available Rates: N/A
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: N/A
Prepayment Penalties: N/A
Minimum FICO Score: 620
Time to Close: N/A
Loan Example 1
Lawrence finds a townhouse in Miami, FL to renovate and resell. Since he does not have enough cash available to buy the $210,000 project outright, he decides to take out a fix-and-flip loan from Hallmark Funding. The lender agrees to issue a note with a 50% loan to value (LTV) so they will loan $105,000 on the project. The parameters of the deal also stipulate a five percent origination fee which will be paid at the closing and a 12 month, interest only note with a 12% rate of interest.
Therefore, the borrower will need to contribute a $105,000 down payment in addition to paying a $5,250 origination fee. Once the deal closes, he will need to pay Hallmark Funding $1,050 in monthly interest payments, or 12% times $105,000 divided by 12 months in the year. If Lawrence sells the house for $315,000 after 12 months, he would then earn a total profit of $87,150 after deducting the principle of $105,000, the cash contributed at closing of $105,000, the origination points of $5,250, and the aggregate interest payments of $12,600. This gross profit does not account for remodeling costs.
Loan Example 2
Meredith takes a fix and flip loan from Hallmark Funding in order to rehab a townhome to resell in Miami, FL. The loan has the following terms:
a) A $350,000 sales price, b) a 70% loan to value (LTV), c) a 12 month term, d) a 11% interest rate, and e) a 3% origination fee.
Meredith intends to list the property at the end of the term for $507,500. If she accomplishes her goal, the final numbers would be the following:
$507,500 sales price
- $245,000 loan principle (70% LTV)
- $105,000 down payment (30% on 70% LTV)
- $7,350 origination points (3% of the $245,000 principle amount)
- $26,950 interest payments (12 months x 11% interest)
= $123,200 gross profit (does not include taxes or rehab costs)
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