About The Money Brokers
The Money Brokers is an asset-based lender based in Sacramento, CA offering loans throughout California. Their focus is mainly on fix and flip loans. They will consider different loan scenarios but primarily focus on single family units and multi family.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family, Multi Family
Areas Served: CA
Licenses: License Number: 00798745
Lending Guidelines for The Money Brokers
Below are the general loan guidelines published on the The Money Brokers website. Please confirm all terms and rates directly with the lender.
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
The following loans are for education purposes only. They do not represent actual loans executed by The Money Brokers.
Loan Example 1
Philip is an investor in Los Angeles, CA. He finds a run-down property and wants to rehab it and flip it for a profit. The house costs $370,000 but he doesn't have the full amount so he takes a private money loan with The Money Brokers. Since the lender sets a 70% loan to value, Philip will be required to put 30% down so the total amount of the note will be $259,000. The terms of the deal also include a three percent origination fee that will be paid at the closing and a 6 month, interest-only note with a 9% rate of interest.
Philip will have to fund a total of $32,400 upon closing to cover the $111,000 down payment in addition to the $7,770 origination fee. he must then pay $1,943 per month to The Money Brokers. If Philip meets his goal of a $481,000 total sales price when the loan term expires, he would make a gross profit of $91,575 after re-paying the principle amount and subtracting the money he brought to closing, the origination fee, and the monthly interest payments.
Loan Example 2
Frederick is a real estate investor in Los Angeles, CA. He finds a run-down house for a renovation project and takes out a fix and flip loan from The Money Brokers with the following features:
$340,000 purchase price
50% loan-to-value (LTV)
12 month term
14% rate of interest
1% origination fee
If Frederick achieves his goal of a $476,000 sales price, the outcome of the project will be as follows:
$476,000 sales price
- $170,000 note principle (50% LTV)
- $170,000 cash paid at closing (50% on 50% LTV)
- $1,700 origination fee (1% of the $170,000 principle)
- $23,800 total interest paid (12 months x 14% interest)
= $110,500 gross profit (doesn't include taxes or renovation costs)
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