About Sound Equity Solutions, LLC
Sound Equity Solutions, LLC is a Bellevue, WA based private money lender offering funding in Washington, Oregon, and California. Their lending focus is mainly on fix and flip hard money loans. They primarily offer funding on single family and multi family.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: WA, OR, CA
Fix and Flip LoansLoan Amounts: N/A
Available Rates: N/A
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
Sound Equity Solutions, LLC makes a fix and flip loan to Alfredo for a rehab project in Los Angeles, CA, on a property that is listed for $360,000. The lender agrees to write a note with a 50% loan-to-value (LTV) so they will loan $180,000 on the house. The rate on the note is 13% for a term of 12 months and the company requires a five point origination fee at the close. The interest payments are to be paid monthly and the principle amount will be repaid after the sale of the property.
In addition to paying the $9,000 origination fee, Alfredo will also have to fund $180,000 of the purchase with his own money, or 50% of the purchase price. Once the deal closes, he will have to pay the lender $1,950 in monthly interest payments, or 13% multiplied times $180,000 divided by 12 months in the year. Alfredo 's plan is to complete the project within the 12 months and sell it for $486,000. If he succeeds he will earn a total profit of $93,600 ($486,000 sales price - $180,000 principle amount - $180,000 down payment - $9,000 origination fee - $23,400 in total interest payments.
Loan Example 2
Sound Equity Solutions, LLC makes a loan to Aileen for a remodeling project in Los Angeles, CA. The loan includes the following:
a) A $310,000 sales price, b) a 50% loan to value (LTV), c) a 12 month term, d) a 10% interest rate, and e) a 1% origination fee.
Aileen plans to list the property at the end of the term for $465,000. If she accomplishes her goal, the outcome will be the following:
$465,000 sales price
- $155,000 principle (50% LTV)
- $155,000 cash paid at closing (50% on 50% LTV)
- $1,550 origination points (1% of the $155,000 principle amount)
- $15,500 interest payments (12 months x 10% interest)
= $137,950 total profit (doesn't include taxes or rehab costs)