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With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
Jensen, UT has 38 hard money bridge lenders offering loans in the city. In this city, the average loan amount is $400,834. Interest rates for hard money loans average around 10.2%. 21 months is the average term for notes issued in the city. The average loan includes a 2.7 point origination fee. 76% is the median loan-to-value (LTV) for offered by lenders in Jensen.
Madeline takes a hard money bridge loan from Mountain Rock Investment Company in order to renovate a condo to resale in Jensen, UT. The list price of the house is $200,000. The borrower will be required to fund 20% of the sales price in cash to the closing based on a 80% loan-to-value set by the lender. This makes the principle amount from Mountain Rock Investment Company $160,000. The loan also includes these features: 1) a 6 month term, 2) a 11% interest only note, and 3) a one point origination fee.
Therefore, the borrower will need to make a $40,000 down payment plus pay a $1,600 origination fee. After the loan is closed and Madeline takes the property, she will have to begin making payments each month of $1,467 to the lender ($160,000 principle x 11% / 12 months). At the end of the loan, she sells the renovated house for $250,000. After subtracting the $8,800 in total interest payments ($1,467 multiplied times 6 months), the $1,600 origination fee, the $160,000 principle amount on the loan, and the $40,000 she brought to the closing, she will earn a gross profit of $39,600 ($250,000 price minus $210,400 in total costs). This profit would then be reduced by any building costs paid out of pocket.
Ocean View Lending Corporation makes a bridge loan to Gilbert for a renovation project in Jensen, UT. The loan dictates the following:
a) A $270,000 purchase price, b) a 65% loan-to-value (LTV), c) a 12 month term, d) a 13% interest rate, and e) a 5% origination fee.
If Gilbert succeeds in his goal of a $391,500 sales price, the outcome of the project will be the following:
$391,500 sales price
- $175,500 principle (65% LTV)
- $94,500 cash paid at closing (35% on 65% LTV)
- $8,775 origination fee (5% of the $175,500 principle)
- $22,815 interest payments (12 months x 13% interest)
-----------------------
= $89,910 gross profit (does not include taxes or rehab costs)
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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