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A total of 42 records for private money bridge lenders were found in Kaysville, UT. The average note amount in the city is $289,286. Rates on private loans issued to Kaysville borrowers average 11.3%. The average loan made in the city is for 35 months. The mean origination for loans is 2.9 points. The median loan-to-value offered for loans in Kaysville is 74%.
Ronnie finds a property in Kaysville, UT to remodel and sell. Since he does not have enough cash to buy the $280,000 property outright, he decides to take out a bridge loan from Prosper Investment Company. The loan-to-value (LTV) on the deal is 80%. This means Ronnie will need to bring 20% of the purchase price to closing and the principle amount will be $224,000 on the loan. The deal also has the following features: 1) a 12 month length, 2) a 14% interest only note, and 3) a five percent origination fee.
On top of the $11,200 origination fee, Ronnie will also have to fund $56,000 of the purchase with his own cash, or 20% of the purchase price. Once the deal is closed and Ronnie takes over the property, he will begin making monthly payments of $2,613 to Prosper Investment Company ($224,000 principle x 14% / 12 months). At the end of the note, he sells the rehabed property for $378,000. After deducting the $31,360 in interest expenses ($2,613 times 12 months), the $11,200 origination fee, the $224,000 principle amount on the note, and the $56,000 he contributed to closing, he will earn a gross profit of $55,440 ($378,000 sales price minus $322,560 in total costs). This profit would be reduced by any building costs paid out of pocket.
Micheal takes out a private money bridge loan from Deep Lake Finance Group so he can rehab a townhome to re-sell in Kaysville, UT. The deal has the following parameters:
$390,000 purchase price
70% loan-to-value (LTV)
18 month term
9% interest rate
3% origination fee
Micheal plans to list the house when the note expires for $468,000. If he accomplishes his goal, the deal numbers would be the following:
$468,000 sales price
- $273,000 principle on note (70% LTV)
- $117,000 cash paid at closing (30% on 70% LTV)
- $8,190 origination fee (3% of the $273,000 principle amount)
- $36,855 interest payments (18 months x 9% interest)
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= $32,955 gross profit (doesn't include taxes or rehab 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!
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