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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!
Caldwell, ID has 45 lenders serving the city. The mean loan amount in this city is $359,167. Interest rates on loans issued to Caldwell investors average 11.2%. The typical loan made in this city has a length of 25 months. The average points applied to the loans is 3.5%. Lenders typically offer a 72% loan to value on hard money loans in Caldwell.
East Side Finance Corporation issues a bridge loan to Gail for a rehab project in Caldwell, ID, on a property that is listed for $280,000. The borrower will have to fund 25% of the purchase price in cash to closing based on a 75% loan-to-value stipulated by the lender. This makes the principle amount from East Side Finance Corporation $210,000. The loan also consists of the following features: 1) a 18 month length, 2) a 14% interest only note, and 3) a two point origination charge.
The borrower must fund a total of $32,400 upon closing to cover the $70,000 down payment plus the $4,200 origination fee. Once the loan closes, she will need to pay the lender $2,450 in monthly interest payments, or 14% multiplied by $210,000 divided by 12 months in a year. If Gail sells the property for $378,000 after 18 months, she would then earn a total profit of $49,700 after deducting the original principle of $210,000, the funds paid at the close of $70,000, the origination points of $4,200, and the aggregate interest payments of $44,100. This amount does not account for renovation costs.
Morris is a real estate investor in Caldwell, ID. He locates a run-down property for a remodeling project and takes a hard money bridge loan from Forest Grove Finance Corporation with the following features:
$350,000 sales price
80% loan-to-value (LTV)
18 month term
14% interest rate
1% origination fee
If Morris achieves his goal of a $490,000 sales price, the final numbers of the project would be the following:
$490,000 sales price
- $280,000 note principle (80% LTV)
- $70,000 cash paid at closing (20% on 80% LTV)
- $2,800 origination fee (1% of the $280,000 principle amount)
- $58,800 interest payments (18 months x 14% interest)
-----------------------
= $78,400 total profit (doesn't include taxes or rehab 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!
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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