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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!
New Middletown, IN has 41 lenders operating within the city. Loan amounts average around $294,688. Rates for hard money loans average around 11.2%. The mean term for loans is 24 months. A typical hard money loan issued in this city includes a 3.3 point origination charge. Lenders in New Middletown average a 73% LTV on their loans.
Sarah closes on a $330,000 rehab project in New Middletown, IN, using a hard money bridge loan from Pretty Perfect Finance Company. Since the lender sets a 50% loan-to-value, Sarah will be required to put 50% down so the principle amount of the loan will be $165,000. The rate on the loan is 12% for a length of 12 months and the lender requires a three point origination fee at closing. The interest payments are to be paid monthly and the principle amount will be repaid after the sale of the property.
On top of the $4,950 origination fee, Sarah will also fund $165,000 of the purchase with her own funds, or 50% of the purchase price. she must then pay $1,650 monthly to Pretty Perfect Finance Company. If Sarah accomplishes her goal of a $396,000 total sales price when the loan term expires, she would make a gross profit of $41,250 after re-paying the principle and deducting the cash she brought to closing, the origination fee, and the total interest payments.
South Side Finance Group makes a hard money bridge loan to Rene for a rehab project in New Middletown, IN. The loan includes the following:
$370,000 purchase price
65% loan to value (LTV)
18 month term
12% rate of interest
4% origination fee
Rene intends to list the project at the end of the term for $555,000. If she succeeds, the final numbers would be the following:
$555,000 sales price
- $240,500 principle on note (65% LTV)
- $129,500 cash paid at closing (35% on 65% LTV)
- $9,620 origination fee (4% of the $240,500 principle)
- $43,290 total interest paid (18 months x 12% interest)
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= $132,090 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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