Nicholas's intention is to complete the house by the end of the 12 months and resell it for $256,500. After the loan is executed and Nicholas takes on the property, he will need to begin making monthly payments of $1,219 to the lender ($133,000 principle x 11% / 12 months). The note is interest-only, paid monthly, and is for 12 months at 11% interest with 5 points to be paid when the deal closes.Īccordingly, Nicholas will be required to make a $57,000 down payment in addition to paying a $6,650 origination fee. This means that Nicholas will bring 30% of the sales price to closing and the principle amount will be $133,000 on the note. ![]() The loan to value (LTV) on the note is 70%. ![]() Nicholas closes on a $190,000 renovation project in Clinton Township, MI, using a hard money bridge loan from Red Oak Investment Corporation.
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