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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!
Derby, KS has 40 bridge lenders issuing loans in the city. In this city, the average loan amount is $294,722. The average interest rate for loans in Derby is 10.9%. The average length for notes is 21 months. The mean origination fee added to the loans is 2.9%. 71% is the average loan to value for for loans in Derby.
Jacob takes a bridge loan from Presitge Lending Corporation in order to remodel a townhome to resale in Derby, KS. The list price of the property is $180,000. As the lender sets a 75% loan-to-value, Jacob will need to put 25% down so the total amount of the note will be $135,000. The terms of the loan dictate a 9% note for 12 months. They also stipulate a 3 point origination fee, that will also be paid at closing.
The borrower will have to contribute a total of $32,400 up front to pay the $45,000 down payment plus the $4,050 origination fee. he must then pay $1,013 per month to the lender. Jacob's intention is to finish the remodel by the end of the 12 months and resell it for $234,000. If he succeeds he will earn a gross profit of $37,800 ($234,000 price - $135,000 principle amount - $45,000 funds brough to closing - $4,050 origination fee - $12,150 in interest.
Erik finds a house in Derby, KS to rehab and sell. Since he does not have enough cash to buy the property outright, he takes a private money bridge loan from Axis Finance with the following parameters:
$260,000 purchase price
65% loan to value (LTV)
12 month term
12% rate of interest
4% origination fee
After the renovation project is finished, if Erik sells the property for $351,000, the outcome would be as follows:
$351,000 sales price
- $169,000 principle on note (65% LTV)
- $91,000 cash paid at closing (35% on 65% LTV)
- $6,760 origination points (4% of the $169,000 principle)
- $20,280 total interest paid (12 months x 12% interest)
-----------------------
= $63,960 total profit (does not include taxes or rehab costs)
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!
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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