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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!
Greenwich, CT has 50 private money bridge lenders offering loans in the city. In this city, the mean amount loaned is $581,111. Interest rates on loans issued to Greenwich borrowers average about 10.1%. The average note issued in this city is for 18 months. The average note includes a 2.2 percent origination charge. The average loan-to-value for loans in Greenwich is 72%.
Ruben finds a house in Greenwich, CT to renovate and re-sell. Since he doesn't have enough cash on-hand to buy the $310,000 property outright, he decides to take out a bridge loan from Downtown Finance. The borrower will have to bring 25% of the sales price in cash to the closing based on a 75% loan to value stipulated by the lending company. This makes the principle note from Downtown Finance $232,500. The note is interest only, paid monthly, and is for 6 months at 10% interest with 3 origination points to be paid at the closing.
Accordingly, Ruben will have to make a $77,500 down payment plus pay a $6,975 origination fee. After the deal is closed and Ruben takes on the property, he will have to begin making payments each month of $1,938 to Downtown Finance ($232,500 principle x 10% / 12 months). If Ruben sells the property for $387,500 after 6 months, he would make a gross profit of $58,900 after subtracting the principle amount of $232,500, the funds paid at the close of $77,500, the origination fee of $6,975, and the total interest payments of $11,625. This amount doesn't account for rehab costs.
Stanley takes a bridge loan from Assurance Investments so he can renovate a townhome to re-sell in Greenwich, CT. The loan has the following terms:
a) A $210,000 sales price, b) a 75% loan-to-value (LTV), c) a 12 month term, d) a 9% interest rate, and e) a 3% origination fee.
Based on a $294,000 sales price after the 12 month term, the numbers for this project would look like this:
$294,000 sales price
- $157,500 principle (75% LTV)
- $52,500 cash paid at closing (25% on 75% LTV)
- $4,725 origination fee (3% of the $157,500 principle amount)
- $14,175 total interest paid (12 months x 9% interest)
-----------------------
= $65,100 gross 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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