Term: 2 Year (longer available upon request/review)
Rate: 12.00%
Payments: Interest Only Paid Monthly
Prepayment Penalty: 3 Month Guaranteed Interest
Loan Sizes: $50k to $750k (higher considered upon exception)
Typical Fees: 3.00 to 3.50 Points, $1495.00 Total Other Lender Fees (includes: processing, docs, u/w, tax service, wire, credit, admin) -- Borrower to pay all 3rd party fees including Escrow, Title and Appraisal.
Why Borrow When You Can Pay All Cash? Assumptions: $200K acquisition,$25k rehab costs, $275K flip price, 6 month hold
Today, you invest $225,000 of your cash to make a potential $75,250 Annual profit.
With leverage, you can make a potential $116,280 Annual profit on the same $225,000 investment.
Purchase Price
$200,000
$200,000
Loan Amount (60% of Appraised Value)
$150,000 (which is 75% of PP)
n/a
Cash Invested - Acquisition
$50,000 (down pymt)
$200,000
Cash Invested - Rehab
$25,000
$25,000
Total Cash Invested
$75,000
$225,000
Sale (flip) Price
$275,000
$275,000
Cost of Sale (4.5%)
$12,375
$12,375
Interest (6 months @ 12%)
$9,000
n/a
Points (3.50%)
$5,250
n/a
Lender Fees
$1,495
n/a
n/a
Escrow/title/appraisal (estimated fees)
$2,500
n/a
Total Lender Cost
$18,245
n/a
n/a
Anticipated net profit (per project)
$19,380
$37,625
# of projects at $225k investment
3
1
Net Profit for $225k investment
$58,140
$37,625
Net Return for $225k investment
25.84%
16.72%
Annualized Profit
$116,280
$75,250
Annualized Return
51.68%
33.4%
Bottom Line:
Fund more deals with LEVERAGE from LTV Capital
Improve your annualized return
Spread your risk over multiple deals
