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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!
There are 47 lenders operating in Canterbury, NH. In this city, the mean amount for loans is $290,278. Interest rates on private loans made to Canterbury borrowers average around 12.3%. The typical length for notes is 17 months. A typical loan made in this city carries a 2.5 point origination cost. 69% is the average loan-to-value for offered by lenders in Canterbury.
Juan finds a duplex in Canterbury, NH to rehab and resell. Since he doesn't have enough cash available to purchase the $280,000 house outright, he takes out a bridge loan from All State Funding Company. The terms of the deal include a 55% loan-to-value (LTV), so he must bring 45% of the price as cash at closing, making the principle loan amount $154,000. The interest rate on the loan is 11% for a term of 6 months and the company requires a four point origination fee at the closing. The interest payments are to be paid monthly and the principle will be repaid after the property sells.
Therefore, Juan will need to make a $126,000 down payment plus pay a $6,160 origination fee. After the loan closes, he will have to pay the lender $1,412 in monthly interest payments, or 11% multiplied by $154,000 divided by 12 months in a year. If Juan sells the house for $350,000 after 6 months, he would realize a gross profit of $55,370 after deducting the original principle of $154,000, the money contributed at closing of $126,000, the origination fee of $6,160, and the aggregate interest payments of $8,470. This profit doesn't include remodeling costs.
Charlie is a an investor in Canterbury, NH. He purchases a run-down house for a remodeling project and obtains a private money bridge loan from West Shore Lending Company with the following paramters:
$270,000 purchase price
80% loan to value (LTV)
18 month term
14% interest rate
2% origination fee
After the renovation project is finished, if Charlie sells the project for $337,500, the numbers would be as follows:
$337,500 sales price
- $216,000 principle (80% LTV)
- $54,000 down payment (20% on 80% LTV)
- $4,320 origination fee (2% of the $216,000 principle)
- $45,360 total interest paid (18 months x 14% interest)
-----------------------
= $17,820 gross 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!
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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