
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
Maxwell, TX has 50 bridge lenders serving the city. Note amounts average about $421,875. Rates for loans average about 11.4%. The typical length offered for loans is 42 months. A typical loan made in the city includes a 2.8 percent origination charge. Lenders in Maxwell average a 70% loan to value (LTV) on their loans.
Armando is a real estate investor in Maxwell, TX. He finds an older property for sale and decides to rehab it and sell it for a profit. The house has a cost of $250,000 but he does not have the full amount so he takes out a bridge loan with Flourish Finance. The lender agrees to issue a note with a 80% loan to value (LTV) so they will extend $200,000 on the project. The rate on the note is 13% for a term of 12 months and the lender requires a two point origination fee at closing. The interest payments are to be paid on a monthly basis and the principle amount will be repaid after the property sells.
In addition to paying the $4,000 origination fee, Armando will also need to fund $50,000 of the purchase with his own funds, or 20% of the purchase price. The lender will collect $2,167 in monthly interest payments from the Armando. This is calculated by taking the total note value of $200,000, multiplying by the 13% rate of interest, and then dividing that number by 12. If Armando accomplishes his goal of a $300,000 sales price when the loan expires, he would collect a total profit of $20,000 after re-paying the principle on the note and deducting the money he paid at closing, the origination points, and the total monthly interest payments.
Blue Mountain Funding Company makes a hard money bridge loan to Ola for a remodeling project in Maxwell, TX. The deal dictates the following:
a) A $310,000 purchase price, b) a 65% loan to value (LTV), c) a 18 month term, d) a 8% interest rate, and e) a 5% origination fee.
Based on a $387,500 sales price after the 18 month term, the final numbers for this project would look like this:
$387,500 sales price
- $201,500 note principle (65% LTV)
- $108,500 cash paid at closing (35% on 65% LTV)
- $10,075 origination fee (5% of the $201,500 principle amount)
- $24,180 interest payments (18 months x 8% interest)
-----------------------
= $43,245 total profit (doesn't include taxes or rehab costs)
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
The ORIGINAL LENDER of NOT requiring any of the below: NO Application, tax returns, credit check, appraisals, pre-inspection, prepay penalty, upfront fees, survey, bank statements or employment!
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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