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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!
Cranston, RI has 50 private money lenders serving the city. The mean note amount in the city is $294,445. The mean interest rate for private loans in Cranston is 11.4%. The mean length for notes is 20 months. The mean points added to the loans is 3.5%. 71% is the mean loan to value (LTV) for offered by lenders in Cranston.
Allie takes a private money bridge loan from GJ Finance in order to remodel a duplex to flip in Cranston, RI. The sales price of the house is $310,000. The loan to value (LTV) on the loan is 60%. This means Allie will have to bring 40% of the sales price to the closing and the principle will be $186,000 on the loan. The deal also includes these features: 1) a 6 month term, 2) a 14% interest-only note, and 3) a four point origination fee.
Allie must fund a total of $32,400 up front to pay the $124,000 down payment in addition to the $7,440 origination fee. The lender will collect $2,170 in monthly interest from the borrower. This is computed by taking the full note value of $186,000, multiplying by the 14% interest rate, and then dividing that number by 12. If Allie sells the property for $418,500 after 6 months, she would earn a total profit of $88,040 after subtracting the principle of $186,000, the cash paid at the close of $124,000, the origination points of $7,440, and the total interest payments of $13,020. This profit does not include remodeling costs.
Jesus locates a duplex in Cranston, RI to remodel and re-sell. Since he does not have enough cash to buy the property outright, he takes a hard money bridge loan from Blue Mountain Lending Corporation with the following parameters:
$260,000 sales price
80% loan-to-value (LTV)
6 month term
12% interest rate
1% origination fee
Assuming a $312,000 sales price after the 6 month term, the numbers for this project would look like the following:
$312,000 sales price
- $208,000 loan principle (80% LTV)
- $52,000 down payment (20% on 80% LTV)
- $2,080 origination fee (1% of the $208,000 principle)
- $12,480 interest payments (6 months x 12% interest)
-----------------------
= $37,440 total profit (doesn't include taxes or renovation costs)
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!
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
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