The Investor's Source

About The Investor's Source

The Investor's Source is a Loveland, CO based private lender. They provide funding throughout Laramie and Cheyenne. They provide builder loans, fix and flip hard money loans, and commercial hard money loans. They issue terms up to 6 months, loans with a maximum LTV of 70%, and rates from 14%. They primarily offer funding for single family units and multi family residences.

Loan Types Offered: Fix and Flip Loans, Commercial Hard Money Loans, New Construction Loans

Property Types Covered: Single Family, Multi Family

Areas Served: Laramie, Cheyenne, CO

Loan Example 1

Bryan finds a duplex in Laramie, WY to renovate and sell. Since he does not have enough cash to acquire the $160,000 house outright, he takes out a fix and flip loan from The Investor's Source. The terms of the loan include a 60% loan to value (LTV), so he must contribute 40% of the price as cash at closing, making the principle note amount $96,000. The loan also includes these features: 1) a 12 month term, 2) a 14% interest only note, and 3) a three point origination fee.

Bryan will have to contribute $64,000 to closing (40% on the 60% loan-to-value), plus he will need to pay the $2,880 origination fee. he must then pay $1,120 monthly to the lender. If Bryan sells the property for $240,000 after 12 months, he would then realize a gross profit of $63,680 after subtracting the original principle of $96,000, the funds contributed at closing of $64,000, the origination fee of $2,880, and the total interest payments of $13,440. This amount does not account for renovation costs.

Loan Example 2

Clayton is a an investor in Laramie, WY. He buys an older property for a remodeling project and takes a private money loan from The Investor's Source with the following terms:

$290,000 purchase price
75% loan-to-value (LTV)
6 month term
8% rate of interest
4% origination fee

Once the rehab project is finished, if Clayton sells the house for $406,000, the final numbers would be the following:

$406,000 sales price
- $217,500 principle on note (75% LTV)
- $72,500 down payment (25% on 75% LTV)
- $8,700 origination fee (4% of the $217,500 principle)
- $8,700 interest payments (6 months x 8% interest)
-----------------------
= $98,600 total profit (doesn't include taxes or renovation costs)

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