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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!
There are 50 private money lenders operating in Leicester, NC. The average loan issued to borrowers is about $432,500. The average interest rate for hard money loans in Leicester is 10.9%. The average length offered for notes is 14 months. The mean origination fee for loans is 3.0 percent. Lenders in Leicester average a 72% loan-to-value (LTV) on their loans.
Howard finds a duplex in Leicester, NC to flip and resell. Since he doesn't have enough cash to purchase the $310,000 house outright, he decides to take out a bridge loan from Perfect Funding. Because the lender sets a 70% loan-to-value, Howard will have to put 30% down so the principle amount of the loan will be $217,000. The deal also consists of these features: 1) a 18 month length, 2) a 14% interest only note, and 3) a one point origination charge.
In addition to paying the $2,170 origination fee, Howard will also fund $93,000 of the purchase with his own cash, or 30% of the purchase price. Perfect Funding will collect $2,532 in monthly interest payments from the Howard. This is computed by taking the full loan value of $217,000, multiplying by the 14% interest rate, and then dividing that number by 12. If Howard sells the property for $372,000 after 18 months, he would make a gross profit of $14,260 after deducting the principle of $217,000, the funds paid at the close of $93,000, the origination points of $2,170, and the total interest payments of $45,570. This profit doesn't account for rehab costs.
Jodi is a real estate investor in Leicester, NC. She purchases a run-down townhouse for a rehab project and takes a private money bridge loan from Prosper Investment Corporation with the following paramters:
$230,000 purchase price
55% loan-to-value (LTV)
18 month term
9% interest rate
5% origination fee
Assuming a $345,000 sales price at the end of the 18 month term, the numbers for this deal would look like this:
$345,000 sales price
- $126,500 note principle (55% LTV)
- $103,500 down payment (45% on 55% LTV)
- $6,325 origination fee (5% of the $126,500 principle amount)
- $17,078 total interest paid (18 months x 9% interest)
-----------------------
= $91,598 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!
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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