
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
Kittredge, CO has 50 private money bridge lenders operating in the city. The average loan amount is $467,500. Rates for private loans average around 10.9%. 39 months is the average length for notes issued in this city. The average origination for the loans is 2.7 points. 76% is the median loan to value (LTV) for offered by lenders in Kittredge.
Nell is an investor in Kittredge, CO. She locates a run-down property for sale and wants to renovate it and sell it for a profit. The property has a cost of $380,000 but she does not have the full amount so she obtains a hard money bridge loan with South Shore Funding. Since the lender agrees to a 80% loan-to-value, Nell will have to put 20% down so the amount of the loan will be $304,000. The loan is interest-only, with monthly payments, and is for 18 months at 11% interest with 3 points paid when the deal closes.
Nell will need to contribute $76,000 at the closing (20% on the 80% loan-to-value), plus she will have to pay the $9,120 origination fee. After the deal closes, she will have to pay South Shore Funding $2,787 in monthly interest payments, or 11% times $304,000 divided by 12 months in the year. Assuming she sells the renovated house for $513,000 at the end of the 18 month term, her total profit (not accounting for rehab costs) would be $73,720. This is computed by taking the purchase price ($513,000) and subtracting the original note amount ($304,000), the origination fee ($9,120), the funds she contributed to closing ($76,000), and the total interest expenses ($50,160).
Luz finds a townhouse in Kittredge, CO to rehab and resell. Since she does not have enough cash to buy the property outright, she takes a bridge loan from River City Lending with the following parameters:
$350,000 sales price
70% loan-to-value (LTV)
6 month term
13% rate of interest
4% origination fee
Once the rehab project is complete, if Luz sells the property for $455,000, the numbers would be the following:
$455,000 sales price
- $245,000 note principle (70% LTV)
- $105,000 cash paid at closing (30% on 70% LTV)
- $9,800 origination points (4% of the $245,000 principle amount)
- $15,925 interest payments (6 months x 13% interest)
-----------------------
= $79,275 gross profit (does not include taxes or renovation costs)
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
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!
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