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With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
Belleville, NJ has 50 private money bridge lenders in the city. The average loan made to borrowers is about $553,000. Rates on hard money loans issued to Belleville borrowers average about 10.1%. The typical loan issued in this city has a length of 18 months. The average loan includes a 2.2 percent origination cost. Lenders in Belleville average a 72% loan-to-value (LTV) on their deals.
Blanche takes a hard money bridge loan from Number One Investment Company in order to rehab a townhome to flip in the North Broadway neighborhood of Belleville, NJ. The sales price of the house is $330,000. The terms of the deal include a 80% loan to value (LTV), so she must bring 20% of the price as cash at closing, which makes the principle loan amount $264,000. The terms of the deal also include a one percent origination fee that is to be paid at the closing and a 6 month, interest only note with a 10% rate of interest.
On top of the $2,640 origination fee, Blanche will also need to fund $66,000 of the purchase with her own cash, or 20% of the purchase price. Once the loan is closed and Blanche takes the project, she will begin making monthly payments of $2,200 to the lender ($264,000 principle x 10% / 12 months). If Blanche achieves her goal of a $429,000 total sales price at the end of the loan term, she would make a gross profit of $83,160 after re-paying the principle amount and subtracting the cash she brought to closing, the origination fee, and the total interest payments.
Alvin is a an investor in the North Broadway neighborhood of Belleville, NJ. He finds an older house for a rehab project and takes out a private money bridge loan from East Shore Investment Company with the following paramters:
a) A $250,000 purchase price, b) a 50% loan-to-value (LTV), c) a 6 month term, d) a 8% interest rate, and e) a 1% origination fee.
After the rehab project is complete, if Alvin sells the house for $375,000, the outcome would be as follows:
$375,000 sales price
- $125,000 note principle (50% LTV)
- $125,000 down payment (50% on 50% LTV)
- $1,250 origination fee (1% of the $125,000 principle amount)
- $5,000 total interest paid (6 months x 8% interest)
-----------------------
= $118,750 gross profit (does not include taxes or renovation costs)
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!
Offering Fix and Flip, Bridge, and DSCR loans. With same day approvals, 3-5 day close time, and lending in 47 states, Park Place Finance will get your next deal funded fast!
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