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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!
Mendenhall, PA has 50 private money bridge lenders serving the city. In this city, the median amount loaned is $392,857. The median rate for hard money loans in Mendenhall is 10.7%. 21 months is the median term for loans issued in this city. The average loan made in the city carries a 2.3 percent origination cost. The typical loan to value for loans in Mendenhall is 73%.
Luz closes on a $350,000 rehab project in Mendenhall, PA, using a private money bridge loan from River City Lending. The borrower will need to bring 30% of the purchase price in cash to closing based on a 70% loan to value stipulated by the lender. This makes the principle note from River City Lending $245,000. The parameters of the loan dictate a 13% note for 6 months. They also require a 4 point origination fee, that will also have to be paid when the property closes.
By the terms of the note, Luz will need to contribute a $9,800 origination fee plus 30% of the purchase price, or $105,000, based on the 70% LTV. Once the loan closes, she will need to pay the lender $2,654 in monthly interest fees, or 13% multiplied times $245,000 divided by 12 months in the year. If Luz sells the property for $455,000 after 6 months, she would then make a gross profit of $79,275 after deducting the principle of $245,000, the money paid at closing of $105,000, the origination points of $9,800, and the aggregate interest payments of $15,925. This gross profit does not account for renovation costs.
Capable Funding Group issues a private money bridge loan to Kerry for a renovation project in Mendenhall, PA. The deal includes the following:
$180,000 purchase price
75% loan-to-value (LTV)
18 month term
9% interest rate
2% origination fee
If Kerry succeeds in her goal of a $243,000 sales price, the outcome of the project would be the following:
$243,000 sales price
- $135,000 principle on note (75% LTV)
- $45,000 cash paid at closing (25% on 75% LTV)
- $2,700 origination points (2% of the $135,000 principle)
- $18,225 interest payments (18 months x 9% interest)
-----------------------
= $42,075 total profit (does not include taxes or rehab 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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