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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!
Bonanza, UT has 38 private money lenders serving the city. Loan amounts average approximately $351,389. Interest rates for hard money loans average around 10.7%. 36 months is the median length for loans made in this city. The mean origination fee for loans is 3.0 points. Lenders in Bonanza average a 71% loan-to-value (LTV) on their loans.
Jeanne closes on a $220,000 rehab project in Bonanza, UT, using a private money bridge loan from Number One Funding Company. The borrower will be required to fund 50% of the purchase price in cash to closing based on a 50% loan-to-value set by the lending company. This makes the principle note from Number One Funding Company $110,000. The parameters of the loan also include a four point origination fee which will be paid at closing and a 6 month, interest only note with a 12% rate of interest.
Jeanne must contribute a total of $32,400 upon closing to cover the $110,000 down payment plus the $4,400 origination fee. she must then pay $1,100 monthly to the lender. If Jeanne achieves her goal of a $264,000 sales price when the loan term expires, she would make a total profit of $33,000 after re-paying the principle amount and subtracting the cash she contributed at closing, the origination fee, and the monthly interest payments.
Lynne is a real estate investor in Bonanza, UT. She purchases an older house for a renovation project and obtains a hard money bridge loan from Big City Finance Corporation with the following features:
a) A $230,000 sales price, b) a 55% loan-to-value (LTV), c) a 6 month term, d) a 10% interest rate, and e) a 4% origination fee.
Assuming a $299,000 sales price at the end of the 6 month term, the final numbers for this deal would look like the following:
$299,000 sales price
- $126,500 note principle (55% LTV)
- $103,500 cash paid at closing (45% on 55% LTV)
- $5,060 origination fee (4% of the $126,500 principle)
- $6,325 interest payments (6 months x 10% interest)
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= $57,615 gross profit (doesn't 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!
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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