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We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
Baldwinsville, NY has 50 hard money lenders operating in the city. The average note issued is approximately $334,722. Rates for loans average around 11.4%. The typical length for loans is 22 months. A typical hard money loan issued in this city carries a 3.4 point origination charge. 68% is the average LTV for for loans in Baldwinsville.
Dwight takes a private money bridge loan from Superior Investment Company in order to rehab a townhouse to flip in Baldwinsville, NY. The sales price of the property is $380,000. The loan to value (LTV) on the loan is 50%. This means that Dwight will have to bring 50% of the sales price to the closing and the principle will be $190,000 on the loan. The terms of the loan also stipulate a five percent origination fee which is to be paid at the closing and a 18 month, interest only note with a 14% interest rate.
Dwight will have to bring $190,000 to the closing (50% on the 50% loan to value), plus he will need to pay the $9,500 origination fee. Superior Investment Company will collect $2,217 in monthly interest payments from the Dwight. This is calculated by taking the full loan amount of $190,000, multiplying that by the 14% interest rate, and then dividing that number by 12. If Dwight meets his goal of a $494,000 sales price when the loan term expires, he would pocket a total profit of $64,600 after re-paying the principle on the note and deducting the money he brought to closing, the origination points, and the monthly interest payments.
Blanca takes a bridge loan from East Shore Lending Corporation in order to rehab a property to resell in Baldwinsville, NY. The loan has the following parameters:
$380,000 purchase price
75% loan-to-value (LTV)
6 month term
11% rate of interest
3% origination fee
If Blanca achieves her goal of a $513,000 sales price, the outcome of the deal would be the following:
$513,000 sales price
- $285,000 loan principle (75% LTV)
- $95,000 cash paid at closing (25% on 75% LTV)
- $8,550 origination points (3% of the $285,000 principle)
- $15,675 interest payments (6 months x 11% interest)
-----------------------
= $108,775 gross profit (doesn't include taxes or rehab costs)
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
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!
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