About Wasatch Private Money
Based in Bluffdale, UT, Wasatch Private Money is a private money lender providing funding throughout Utah. Their focus is mainly on hard money bridge loans. Their lending parameters are versatile, including terms between 1 month and 6 months. The focus of their lending is for single family units and multi family.
Loan Types Offered: Bridge Loans
Property Types Covered: Single Family, Multi Family
Areas Served: UT
Bridge LoansLoan Amounts: N/A
Available Rates: N/A
Typical Terms: 1 months - 6 months
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: YES
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: 3 - 4 Days
Loan Example 1
Wasatch Private Money issues a loan to Sam for a rehab project in Salt Lake City, UT, on a house that is listed for $220,000. The lender agrees to write a loan with a 60% loan to value (LTV) so they are willing to loan $132,000 on the project. The interest rate on the loan is 11% for a length of 18 months and the lender requires a three point origination fee at closing. The interest is to be paid on a monthly basis and the principle will be returned after the sale of the property.
The borrower will need to bring a total of $32,400 up front to cover the $88,000 down payment plus the $3,960 origination fee. The monthly interest only payments will then be $1,210 to the lender. If Sam sells the property for $275,000 after 18 months, he would then make a gross profit of $29,260 after deducting the principle amount of $132,000, the money paid at closing of $88,000, the origination points of $3,960, and the aggregate interest payments of $21,780. This profit does not account for rehab costs.
Loan Example 2
Elinor locates a townhouse in Salt Lake City, UT to remodel and re-sell. Because she does not have enough cash to buy the property outright, she takes a private money bridge loan from Wasatch Private Money with the following parameters:
a) A $220,000 purchase price, b) a 50% loan to value (LTV), c) a 12 month term, d) a 12% interest rate, and e) a 4% origination fee.
If Elinor achieves her goal of a $264,000 sales price, the outcome of the deal will be as follows:
$264,000 sales price
- $110,000 note principle (50% LTV)
- $110,000 down payment (50% on 50% LTV)
- $4,400 origination points (4% of the $110,000 principle amount)
- $13,200 interest payments (12 months x 12% interest)
= $26,400 total profit (doesn't include taxes or renovation costs)
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