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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!
Marana, AZ has 50 lenders serving the city. The mean loan amount is $319,643. The mean interest rate for loans in Marana is 10.7%. The typical loan made in the city has a term of 48 months. The average points applied to loans is 2.5%. The average LTV offered for loans in Marana is 70%.
Pedro is a house flipper in Marana, AZ. He locates an run-down property for sale in the Avra Valley area and decides to renovate it and sell it for a profit. The house costs $320,000 but he does not have the full amount so he takes out a bridge loan with North Shore Finance Group. The borrower will be required to contribute 20% of the sales price in cash to closing based on a 80% loan to value set by the lending company. This makes the principle amount from North Shore Finance Group $256,000. The rate on the note is 13% for a term of 12 months and the lender requires a five point origination fee at the closing. The interest payments are to be paid on a monthly basis and the principle will be repaid after the sale of the property.
Pedro will need to bring $64,000 at the closing (20% on the 80% loan to value), plus he will pay the $12,800 origination fee. After the loan is executed and Pedro takes on the property, he will begin making payments each month of $2,773 to the lender ($256,000 principle x 13% / 12 months). If Pedro sells the project for $416,000 after 12 months, he would realize a gross profit of $49,920 after deducting the principle of $256,000, the funds contributed at closing of $64,000, the origination fee of $12,800, and the aggregate interest payments of $33,280. This profit does not include rehab costs.
Corey is a real estate investor in the Avra Valley neighborhood of Marana, AZ. He locates a run-down townhouse for a renovation project and takes a private money bridge loan from Investors Investment Corporation with the following paramters:
a) A $270,000 sales price, b) a 75% loan-to-value (LTV), c) a 18 month term, d) a 12% interest rate, and e) a 3% origination fee.
Once the rehab project is complete, if Corey sells the project for $378,000, the outcome would be as follows:
$378,000 sales price
- $202,500 principle on note (75% LTV)
- $67,500 down payment (25% on 75% LTV)
- $6,075 origination fee (3% of the $202,500 principle)
- $36,450 total interest paid (18 months x 12% interest)
-----------------------
= $65,475 total profit (does not include taxes or renovation costs)
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!
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!
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