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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!
New Hampton, NH has 47 hard money bridge lenders in the city. The mean note amount in the city is $308,334. Interest rates for hard money loans average 10.6%. The mean length for notes is 17 months. The mean origination fee for loans is 2.5 points. Lenders in New Hampton average a 72% LTV on their deals.
Blue Sky Lending issues a hard money bridge loan to Yolanda for a rehab project in New Hampton, NH, on a house that costs $250,000. The loan to value (LTV) on the note is 55%. This means Yolanda will bring 45% of the purchase price to closing and the principle will be $137,500 on the deal. The rate on the note is 11% for a term of 18 months and the lender requires a two point origination fee at the close. The interest is to be paid on a monthly basis and the principle will be paid back after the sale of the property.
In accordance with the parameters of the note, Yolanda will be required to pay a $2,750 origination fee plus 45% of the purchase price, or $112,500, since there is a 55% LTV. Once the deal closes, she will have to pay Blue Sky Lending $1,260 in monthly interest payments, or 11% multiplied by $137,500 divided by 12 months in the year. Yolanda's plan is to finish the renovation by the end of the 18 months and re-sell it for $362,500. If she succeeds she will collect a total profit of $87,063 ($362,500 sales price - $137,500 principle - $112,500 funds brough to closing - $2,750 origination points - $22,688 in interest.
Joshua is a an investor in New Hampton, NH. He buys an older house for a remodeling project and takes out a bridge loan from Pretty Perfect Lending Company with the following features:
a) A $280,000 sales price, b) a 70% loan to value (LTV), c) a 12 month term, d) a 8% interest rate, and e) a 3% origination fee.
If Joshua accomplishes his goal of a $336,000 sales price, the numbers of the project will be as follows:
$336,000 sales price
- $196,000 principle on note (70% LTV)
- $84,000 down payment (30% on 70% LTV)
- $5,880 origination points (3% of the $196,000 principle)
- $15,680 interest payments (12 months x 8% interest)
-----------------------
= $34,440 total profit (doesn't 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!
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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