About Hard Money Home LLC
Hard Money Home LLC is an asset-based lender in Glendale, WI offering loans in Wisconsin. Their focus is primarily on fix-and-flip hard money loans. Their loan guidelines are versatile, including terms between 3 months and 1 year, rates ranging between 15% and 20%, and loans with a maximum LTV of 65%. The focus of their lending is for single family residences and multi-family units.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: WI
Fix and Flip LoansLoan Amounts: N/A
Available Rates: 15% - 20%
Typical Terms: 3 months - 12 months
Points Charged: 5% - 10%
Max Loan-to-Value (LTV): 65%
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: NO
Interest Only Loans: YES
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: N/A
Loan Example 1
Lewis closes on a $160,000 rehab project in Milwaukee, WI, using a hard money loan from Hard Money Home LLC. The loan to value (LTV) on the loan is 65%. This means Lewis will have to bring 35% of the sales price to closing and the principle will be $104,000 on the note. The note is interest-only, paid monthly, and is for 12 months at 8% interest with 2 points paid at closing.
Lewis will have to contribute $56,000 to closing (35% on the 65% loan-to-value), plus he will pay the $2,080 origination fee. After the deal closes, he will pay Hard Money Home LLC $693 in monthly interest payments, or 8% times $104,000 divided by 12 months in the year. Lewis 's plan is to complete the renovation by the end of the 12 months and resell it for $240,000. If he succeeds he will collect a total profit of $69,600 ($240,000 sales price - $104,000 principle - $56,000 cash at closing - $2,080 origination points - $8,320 in interest.
Loan Example 2
Phillip finds a house in Milwaukee, WI to renovate and sell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from Hard Money Home LLC with the following parameters:
a) A $170,000 purchase price, b) a 80% loan-to-value (LTV), c) a 12 month term, d) a 10% interest rate, and e) a 2% origination fee.
Based on a $255,000 sales price after the 12 month term, the outcome for the project would look like this:
$255,000 sales price
- $136,000 principle on note (80% LTV)
- $34,000 cash paid at closing (20% on 80% LTV)
- $2,720 origination fee (2% of the $136,000 principle amount)
- $13,600 interest payments (12 months x 10% interest)
= $68,680 total profit (does not include taxes or renovation costs)
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