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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!
Gower, MO has 43 private money bridge lenders in the city. The average amount loaned is $297,500. Rates on hard money loans issued to Gower borrowers average 10.9%. The average length offered for loans is 15 months. The mean loan includes a 3.2 point origination charge. The typical loan-to-value offered for loans in Gower is 75%.
Leroy takes a private money bridge loan from East End Finance Company in order to remodel a property to flip in Gower, MO. The price of the property is $170,000. The borrower will need to contribute 20% of the sales price in cash to closing based on a 80% loan-to-value stipulated by the lender. This makes the principle note from East End Finance Company $136,000. The note is interest-only, with monthly payments, and is for 6 months at 11% interest with 4 origination points to be paid when the deal closes.
According to the parameters of the loan, Leroy will be required to contribute a $5,440 origination fee plus 20% of the sales price, or $34,000, based on the 80% LTV. The lender will collect $1,247 in monthly interest payments from the Leroy. This is calculated by taking the full note value of $136,000, multiplying that by the 11% rate of interest, and then dividing that number by 12. Leroy's plan is to complete the house by the end of the 6 months and re-sell it for $255,000. If he succeeds he will collect a total profit of $72,080 ($255,000 sales price - $136,000 principle - $34,000 cash paid at closing - $5,440 origination fee - $7,480 in total interest.
Oak Hill Funding issues a bridge loan to Victoria for a remodeling project in Gower, MO. The loan dictates the following:
a) A $230,000 sales price, b) a 50% loan to value (LTV), c) a 6 month term, d) a 12% interest rate, and e) a 4% origination fee.
Based on a $287,500 sales price at the end of the 6 month term, the final numbers for this deal would look like the following:
$287,500 sales price
- $115,000 principle (50% LTV)
- $115,000 down payment (50% on 50% LTV)
- $4,600 origination fee (4% of the $115,000 principle)
- $6,900 total interest paid (6 months x 12% interest)
-----------------------
= $46,000 total profit (does not 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!
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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