About Preston Ware
Based in Lake Worth, FL, Preston Ware is an asset-based lender providing funding in Florida. Their lending focus is primarily on short term fix and flip loans. Their lending parameters are flexible, including terms between 3 months and 9 months, loans with a maximum LTV of 60%, and rates ranging between 12% and 15%. They primarily offer loans for single family and multi family residences.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: FL
Licenses: NMLS #1696266
Lending Guidelines for Preston Ware
Below are the general loan guidelines published on the Preston Ware website. Please confirm all terms and rates directly with the lender.
Fix and Flip LoansLoan Amounts: N/A
Available Rates: 12% - 15%
Typical Terms: 3 months - 9 months
Points Charged: 3% - 6%
Max Loan-to-Value (LTV): 60%
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
The following loans are for education purposes only. They do not represent actual loans executed by Preston Ware.
Loan Example 1
Jane takes a hard money loan from Preston Ware in order to renovate a house to resale in Miami, FL. The price of the house is $300,000. The borrower will need to contribute 20% of the sales price in cash to closing based on a 80% loan-to-value set by the lender. This makes the principle amount from Preston Ware $240,000. The terms of the loan also include a five point origination fee which will be paid at closing and a 12 month, interest-only note with a 12% interest rate.
Jane will have to contribute $60,000 at closing (20% on the 80% loan-to-value), plus she will have to pay the $12,000 origination fee. Preston Ware will collect $2,400 in monthly interest payments from the Jane . This is computed by taking the full note value of $240,000, multiplying by the 12% interest rate, and then dividing that number by 12. Assuming Jane sells the renovated project for $375,000 at the end of the 12 month term, her total profit (not including rehab costs) would be $34,200. This is computed by taking the purchase price ($375,000) and subtracting the principle ($240,000), the origination cost ($12,000), the money she brought to closing ($60,000), and the total interest payments ($28,800).
Loan Example 2
Vivian is a real estate investor in Miami, FL. She buys a run-down townhouse for a remodeling project and takes out a private money loan from Preston Ware with the following terms:
$220,000 purchase price
70% loan-to-value (LTV)
12 month term
10% interest rate
4% origination fee
Based on a $330,000 sales price at the end of the 12 month term, the outcome for this deal would look like this:
$330,000 sales price
- $154,000 note principle (70% LTV)
- $66,000 cash paid at closing (30% on 70% LTV)
- $6,160 origination fee (4% of the $154,000 principle amount)
- $15,400 interest payments (12 months x 10% interest)
= $88,440 total profit (does not include taxes or renovation costs)
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