Here are the before pictures of a new loan that we gave a hard money loan on in Encanto.
The purchase price was $155,000. The flippers have an estimated $40,000 in repair costs for this property. We did a hard money loan for $125,000 on this property. When the property is completed it should be worth about $220,000. This is a great price point because it's the low end and the low end sells fast.
The comparable rents on a property like this 3 bedroom 2 bath house should be about $1,500 a month in the area. If I need to take this house back, I will be making $1,500 on my investment of $125,000. After taxes and insurance I will be $1,370 positive every month, this is a $13% cash on cash return.
This hard money loan is paying the investor 10%
Take a look at the pictures;
The purchase price was $155,000. The flippers have an estimated $40,000 in repair costs for this property. We did a hard money loan for $125,000 on this property. When the property is completed it should be worth about $220,000. This is a great price point because it's the low end and the low end sells fast.
The comparable rents on a property like this 3 bedroom 2 bath house should be about $1,500 a month in the area. If I need to take this house back, I will be making $1,500 on my investment of $125,000. After taxes and insurance I will be $1,370 positive every month, this is a $13% cash on cash return.
This hard money loan is paying the investor 10%
Take a look at the pictures;
