About Ready Mortgage
Ready Mortgage is a Richardson, TX based private money lender. They provide loans in Oklahoma, Tennessee, and Texas. Their lending focus is mainly on fix and flip hard money loans. Their lending parameters are flexible, including rates ranging from 14%, loans with a maximum LTV of 65%, and terms up to 6 months. The focus of their loans is on single family residences.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family
Areas Served: OK, TN, TX
Fix and Flip LoansLoan Amounts: N/A
Available Rates: 14%
Typical Terms: 6 months
Points Charged: 4%
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
Ready Mortgage makes a hard money loan to Morris for a renovation project in Houston, TX, on a house that costs $180,000. The loan-to-value (LTV) on the loan is 50%. This means Morris will bring 50% of the sales price to the closing and the principle amount will be $90,000 on the deal. The parameters of the deal also stipulate a two percent origination fee that will be paid at the closing and a 18 month, interest only note with a 10% rate of interest.
Therefore, the borrower will need to make a $90,000 down payment plus pay a $1,800 origination fee. Once the loan closes, he will need to pay Ready Mortgage $750 in monthly interest payments, or 10% multiplied by $90,000 divided by 12 months in the year. Morris 's intention is to complete the project by the end of the 18 months and re-sell it for $261,000. If he succeeds he will earn a profit of $65,700 ($261,000 sales price - $90,000 principle amount - $90,000 cash at closing - $1,800 origination fee - $13,500 in total interest.
Loan Example 2
Howard is a an investor in Houston, TX. He locates an older townhouse for a rehab project and obtains a fix and flip loan from Ready Mortgage with the following terms:
a) A $250,000 sales price, b) a 80% loan to value (LTV), c) a 18 month term, d) a 10% interest rate, and e) a 1% origination fee.
If Howard accomplishes his goal of a $312,500 sales price, the final numbers of the deal would be the following:
$312,500 sales price
- $200,000 loan principle (80% LTV)
- $50,000 cash paid at closing (20% on 80% LTV)
- $2,000 origination fee (1% of the $200,000 principle)
- $30,000 total interest paid (18 months x 10% interest)
= $30,500 gross profit (does not include taxes or rehab costs)
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