
The ORIGINAL LENDER of NOT requiring any of the below: NO Application, tax returns, credit check, appraisals, pre-inspection, prepay penalty, upfront fees, survey, bank statements or employment!
Haslet, TX has 50 lenders operating in the city. In this city, the median note amount is $304,167. Rates for loans average around 11.6%. 19 months is the median length for loans issued in the city. The average note includes a 3.1 point origination cost. Lenders offer on average a 71% loan-to-value (LTV) on hard money loans in Haslet.
Sam is a real estate investor in Haslet, TX. He discovers an run-down property in the Crawford Farms area and decides to rehab it and re-sell it for a profit. The house has a cost of $180,000 but he does not have the full amount so he obtains a private money bridge loan with Fair View Funding Corporation. The lender agrees to write a loan with a 70% loan to value (LTV) so they will extend $126,000 on the property. The terms of the loan dictate a 11% note for 6 months. They also require a 2 point origination fee, which will also be paid upon closing.
In accordance with the parameters of the loan, Sam will need to pay a $2,520 origination fee in addition to 30% of the purchase price, or $54,000, since there is a 70% LTV. Once the loan is closed and Sam takes over the project, he will have to begin making payments each month of $1,155 to the lender ($126,000 principle x 11% / 12 months). At the end of the loan, he sells the rehabed house for $243,000. After deducting the $6,930 in total interest payments ($1,155 multiplied by 6 months), the $2,520 origination fee, the $126,000 principle on the loan, and the $54,000 he contributed to closing, he will make a total profit of $53,550 ($243,000 sales price minus $189,450 in costs). This profit would be reduced by any building costs paid by Sam.
Marshall is a real estate investor in the Basswood Village area of Haslet, TX. He purchases an older townhouse for a remodeling project and takes a bridge loan from East Shore Funding Corporation with the following terms:
$230,000 sales price
85% loan-to-value (LTV)
6 month term
13% interest rate
3% origination fee
Assuming a $310,500 sales price after the 6 month term, the final numbers for the deal would look like this:
$310,500 sales price
- $195,500 principle (85% LTV)
- $34,500 down payment (15% on 85% LTV)
- $5,865 origination fee (3% of the $195,500 principle)
- $12,708 interest payments (6 months x 13% interest)
-----------------------
= $61,928 gross profit (does not include taxes or rehab costs)
The ORIGINAL LENDER of NOT requiring any of the below: NO Application, tax returns, credit check, appraisals, pre-inspection, prepay penalty, upfront fees, survey, bank statements or employment!
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
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