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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!
Kissimmee, FL has 50 lenders serving the city. The median amount loaned is $295,834. Interest rates on loans issued to Kissimmee investors average 10.9%. The typical length for loans is 48 months. The mean loan includes a 3.4 percent origination fee. Lenders offer on average a 71% LTV on loans in Kissimmee.
Chester is an investor in Kissimmee, FL. He locates a run-down property for sale and decides to rehab it and sell it for a profit. The property costs $260,000 but he doesn't have the full amount so he obtains a private money bridge loan with BCC Funding Company. As the lender agrees to a 80% loan-to-value, Chester will be required to put 20% down so the amount of the note will be $208,000. The loan also consists of the following features: 1) a 6 month length, 2) a 14% interest-only note, and 3) a one point origination charge.
Therefore, the borrower will have to make a $52,000 down payment plus pay a $2,080 origination fee. Once the loan closes, he will need to pay the lender $2,427 in monthly interest fees, or 14% multiplied by $208,000 divided by 12 months in the year. If Chester sells the house for $364,000 after 6 months, he would make a total profit of $87,360 after deducting the principle amount of $208,000, the cash paid at closing of $52,000, the origination points of $2,080, and the aggregate interest payments of $14,560. This profit doesn't include remodeling costs.
Jorge takes a bridge loan from Rolling Brook Funding Group in order to remodel a house to re-sell in Kissimmee, FL. The loan has the following terms:
$150,000 purchase price
55% loan to value (LTV)
18 month term
14% rate of interest
3% origination fee
After the rehab project is completed, if Jorge sells the house for $195,000, the final numbers would be as follows:
$195,000 sales price
- $82,500 principle (55% LTV)
- $67,500 cash paid at closing (45% on 55% LTV)
- $2,475 origination fee (3% of the $82,500 principle amount)
- $17,325 total interest paid (18 months x 14% interest)
-----------------------
= $25,200 total profit (doesn't include taxes or renovation costs)
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
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!
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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