About Palm Desert Capital
Palm Desert Capital is a Palm Desert, CA based private money lender providing funding in California. Their focus is mainly on fix and flip loans. They offer rates up to 12% . They primarily offer funding on single family residences.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family
Areas Served: CA
Fix and Flip LoansLoan Amounts: N/A
Available Rates: Up to 12%
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: N/A
Time to Close: N/A
Loan Example 1
Ginger closes on a $170,000 renovation project in Los Angeles, CA, using a fix-and-flip loan from Palm Desert Capital. The borrower will be required to fund 45% of the purchase price in cash to the closing based on a 55% loan-to-value set by the lender. This makes the principle amount from Palm Desert Capital $93,500. The loan also consists of these features: 1) a 6 month term, 2) a 12% interest-only note, and 3) a two point origination fee.
Accordingly, the borrower will be required to contribute a $76,500 down payment in addition to paying a $1,870 origination fee. she must then pay $935 monthly to the lender. Ginger 's intention is to complete the remodel by the end of the 6 months and re-sell it for $246,500. If she succeeds she will collect a profit of $69,020 ($246,500 price - $93,500 principle amount - $76,500 down payment - $1,870 origination fee - $5,610 in interest.
Loan Example 2
Chris is a an investor in Los Angeles, CA. She locates a run-down townhouse for a rehab project and obtains a fix and flip loan from Palm Desert Capital with the following terms:
a) A $280,000 sales price, b) a 55% loan-to-value (LTV), c) a 12 month term, d) a 9% interest rate, and e) a 3% origination fee.
Once the rehab project is completed, if Chris sells the project for $392,000, the numbers would be the following:
$392,000 sales price
- $154,000 principle (55% LTV)
- $126,000 cash paid at closing (45% on 55% LTV)
- $4,620 origination points (3% of the $154,000 principle)
- $13,860 total interest paid (12 months x 9% interest)
= $93,520 total profit (does not include taxes or renovation costs)
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