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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!
Nahant, MA has 50 hard money bridge lenders offering loans within the city. The average loan issued is about $301,389. Rates on loans issued to Nahant borrowers average 11.7%. 18 months is the average length for loans made in this city. A typical loan offered in this city carries a 3.3 percent origination charge. 74% is the typical loan-to-value (LTV) offered for for loans in Nahant.
Tia finds a condo in Nahant, MA to rehab and resell. Since she doesn't have enough cash on-hand to acquire the $340,000 house outright, she decides to take out a bridge loan from North Shore Lending. The terms of the loan include a 70% loan to value (LTV), so she must bring 30% of the price as cash to closing, which makes the principle note amount $238,000. The deal also has these features: 1) a 6 month length, 2) a 11% interest-only note, and 3) a one point origination charge.
According to the terms of the loan, Tia will need to pay a $2,380 origination fee in addition to 30% of the purchase price, or $102,000, since there is a 70% LTV. she must then pay $2,182 per month to the lender. If Tia sells the house for $459,000 after 6 months, she would then earn a total profit of $103,530 after deducting the principle amount of $238,000, the funds paid at closing of $102,000, the origination fee of $2,380, and the total interest payments of $13,090. This profit doesn't include remodeling costs.
Rising Sun Finance Group makes a hard money bridge loan to Glenda for a remodeling project in Nahant, MA. The deal dictates the following:
a) A $340,000 sales price, b) a 75% loan to value (LTV), c) a 6 month term, d) a 14% interest rate, and e) a 3% origination fee.
If Glenda achieves her goal of a $408,000 sales price, the numbers of the deal would be as follows:
$408,000 sales price
- $255,000 loan principle (75% LTV)
- $85,000 down payment (25% on 75% LTV)
- $7,650 origination fee (3% of the $255,000 principle amount)
- $17,850 interest payments (6 months x 14% interest)
-----------------------
= $42,500 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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