
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
Alamo, TX has 50 lenders operating within the city. The median loan amount is $450,000. Interest rates on hard money loans made to Alamo borrowers average 10.9%. 40 months is the median length for loans made in the city. The average points charged on loans is 3.2%. Lenders offer on average a 71% loan-to-value (LTV) on loans in Alamo.
Andre finds a property in the South Alamo area of Alamo, TX to renovate and re-sell. Since he does not have enough cash on-hand to acquire the $280,000 project outright, he decides to take out a bridge loan from River View Lending Company. The loan-to-value (LTV) on the deal is 80%. This means Andre will bring 20% of the sales price to the closing and the principle amount will be $224,000 on the loan. The interest rate on the note is 10% for a length of 6 months and the company requires a three point origination fee at the closing. The interest payments are to be paid on a monthly basis and the principle amount will be paid back after the sale of the property.
Accordingly, Andre will have to make a $56,000 down payment plus pay a $6,720 origination fee. After the deal closes, he will pay River View Lending Company $1,867 in monthly interest payments, or 10% multiplied times $224,000 divided by 12 months in a year. Assuming Andre sells the rehabed project for $350,000 at the end of the 6 month term, his gross profit (not accounting for renovation expenses) would be $52,080. This is calculated by taking the purchase price ($350,000) and subtracting the original note amount ($224,000), the origination fee ($6,720), the funds he brought to closing ($56,000), and the total interest payments ($11,200).
River View Finance Group makes a hard money bridge loan to Caitlin for a renovation project in the South Alamo area of Alamo, TX. The loan dictates the following:
a) A $250,000 sales price, b) a 70% loan-to-value (LTV), c) a 12 month term, d) a 14% interest rate, and e) a 1% origination fee.
If Caitlin succeeds in her goal of a $350,000 sales price, the final numbers of the deal will be the following:
$350,000 sales price
- $175,000 loan principle (70% LTV)
- $75,000 down payment (30% on 70% LTV)
- $1,750 origination fee (1% of the $175,000 principle)
- $24,500 interest payments (12 months x 14% interest)
-----------------------
= $73,750 total profit (doesn't include taxes or renovation costs)
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
The ORIGINAL LENDER of NOT requiring any of the below: NO Application, tax returns, credit check, appraisals, pre-inspection, prepay penalty, upfront fees, survey, bank statements or employment!
Nation’s fastest and easiest private real estate lender - Funding Fix and Flip, Ground-Up Construction, and DSCR. Closing as fast as 5 business days!
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
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