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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!
Kansas City, MO has 45 lenders operating in the city. The average note amount in this city is $305,000. The average interest rate for hard money loans in Kansas City is 11.1%. 16 months is the average length for loans made in this city. The average loan offered in this city carries a 3.0 point origination charge. 78% is the median loan to value for for loans in Kansas City.
Fay finds a condo in the Wendell Phillips neighborhood of Kansas City, MO to renovate and sell. Since she doesn't have enough cash available to acquire the $390,000 property outright, she takes out a private money bridge loan from North End Lending Group. The loan to value (LTV) on the note is 65%. This means Fay will have to bring 35% of the purchase price to the closing and the principle amount will be $253,500 on the deal. The loan is interest-only, with monthly payments, and is for 12 months at 10% interest with 2 origination points paid when the deal closes.
Therefore, Fay will need to make a $136,500 down payment plus pay a $5,070 origination fee. After the loan is closed and Fay takes over the property, she will begin making monthly payments of $2,113 to the lender ($253,500 principle x 10% / 12 months). If Fay achieves her goal of a $585,000 sales price when the loan term expires, she would pocket a gross profit of $164,580 after repaying the principle on the note and deducting the cash she paid at closing, the origination points, and the monthly interest payments.
Nadine takes a bridge loan from Brown Investment Corporation so she can rehab a house to resell in the Westside North area of Kansas City, MO. The loan has the following terms:
a) A $210,000 purchase price, b) a 75% loan to value (LTV), c) a 6 month term, d) a 8% interest rate, and e) a 2% origination fee.
If Nadine succeeds in her goal of a $294,000 sales price, the numbers of the deal would be as follows:
$294,000 sales price
- $157,500 principle (75% LTV)
- $52,500 down payment (25% on 75% LTV)
- $3,150 origination points (2% of the $157,500 principle amount)
- $6,300 interest payments (6 months x 8% interest)
-----------------------
= $74,550 total profit (doesn't 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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