About Private Lender of New England
Private Lender of New England is a Cranston, RI based hard money lender offering funding throughout Massachusetts, New Hampshire, Rhode Island, Maine, and Connecticut. Their focus is mainly on fix and flip hard money loans. They offer rates ranging between 12% and 18%, loans with a maximum LTV of 80%, and terms between 12 months and 36 months. They primarily make loans on single family units and multi-family.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: MA, NH, RI, ME, CT
Lending Guidelines for Private Lender of New England
Below are the general loan guidelines published on the Private Lender of New England website. Please confirm all terms and rates directly with the lender.
Fix and Flip LoansLoan Amounts: N/A
Available Rates: 12% - 18%
Typical Terms: 12 months - 36 months
Points Charged: N/A
Max Loan-to-Value (LTV): 80%
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: 1 Month
The following loans are for education purposes only. They do not represent actual loans executed by Private Lender of New England.
Loan Example 1
Theodore finds a house in Boston, MA to renovate and sell. Since he doesn't have enough cash on-hand to acquire the $340,000 property outright, he takes out a fix-and-flip loan from Private Lender of New England. The terms of the loan include a 55% loan-to-value (LTV), so he must contribute 45% of the price as cash to closing, which makes the principle loan amount $187,000. The terms of the note also stipulate a three percent origination fee which will be paid at closing and a 12 month, interest only note with a 12% interest rate.
The borrower will need to fund a total of $32,400 up front to cover the $153,000 down payment plus the $5,610 origination fee. he must then pay $1,870 per month to the lender. At the end of the loan, he sells the rehabed property for $442,000. After deducting the $22,440 in interest expenses ($1,870 multiplied times 12 months), the $5,610 origination fee, the $187,000 principle amount on the loan, and the $153,000 he brought to closing, he will earn a total profit of $73,950 ($442,000 price minus $368,050 in costs). This profit would then be reduced by any rehab costs paid by Theodore .
Loan Example 2
Bernard is a real estate investor in Boston, MA. He purchases a run-down house for a rehab project and obtains a private money loan from Private Lender of New England with the following features:
$150,000 sales price
50% loan-to-value (LTV)
12 month term
9% rate of interest
4% origination fee
Bernard plans to sell the project at the end of the term for $187,500. If he achieves this goal, the outcome would be as follows:
$187,500 sales price
- $75,000 loan principle (50% LTV)
- $75,000 down payment (50% on 50% LTV)
- $3,000 origination points (4% of the $75,000 principle)
- $6,750 interest payments (12 months x 9% interest)
= $27,750 total profit (does not include taxes or renovation costs)
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