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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!
Oakland, ME has 41 bridge lenders issuing loans in the city. Note amounts average approximately $326,750. Interest rates on loans issued to Oakland investors average about 10.0%. The mean term offered for loans is 17 months. The mean note includes a 2.3 percent origination charge. The average loan-to-value (LTV) offered for loans in Oakland is 77%.
Beatrice takes a hard money bridge loan from Red City Funding in order to renovate a condo to flip in Oakland, ME. The price of the property is $220,000. Because the lender agrees to a 80% loan-to-value, Beatrice will need to put 20% down so the principle amount of the loan will be $176,000. The loan is interest-only, with monthly payments, and is for 12 months at 12% interest with 2 origination points paid when the deal closes.
The borrower will need to bring a total of $32,400 upon closing to pay the $44,000 down payment plus the $3,520 origination fee. The monthly interest-only payments will then be $1,760 to Red City Funding. If Beatrice sells the remodeled project for $286,000 at the end of the 12 month term, her gross profit (not accounting for rehab costs) would be $41,360. This is computed by taking the sales price ($286,000) and subtracting the original note amount ($176,000), the origination cost ($3,520), the cash she brought to closing ($44,000), and the total interest payments ($21,120).
Cindy takes out a hard money bridge loan from Progressive Lending Corporation in order to remodel a property to resell in Oakland, ME. The deal has the following parameters:
a) A $210,000 purchase price, b) a 70% loan-to-value (LTV), c) a 12 month term, d) a 12% interest rate, and e) a 2% origination fee.
Assuming a $252,000 sales price at the end of the 12 month term, the outcome for the deal would look like this:
$252,000 sales price
- $147,000 note principle (70% LTV)
- $63,000 down payment (30% on 70% LTV)
- $2,940 origination fee (2% of the $147,000 principle amount)
- $17,640 total interest paid (12 months x 12% interest)
-----------------------
= $21,420 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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