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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!
Palm Harbor, FL has 50 private money bridge lenders offering loans within the city. The median note amount in this city is $330,000. Interest rates for loans average around 11.9%. The typical term for notes is 27 months. The mean origination for the loans is 2.9 percent. Lenders in Palm Harbor average a 72% LTV on their deals.
Johnnie is an investor in Palm Harbor, FL. He finds an older property in the Forest Run Homeowners Association subdivision and wants to renovate it and re-sell it for a profit. The house costs $290,000 but he doesn't have the full amount so he takes out a bridge loan with East Star Funding Corporation. The lender agrees to write a loan with a 85% loan-to-value (LTV) so they will loan $246,500 on the house. The terms of the deal dictate a 10% note for 6 months. They also stipulate a 5 point origination fee, that will also be paid upon closing.
By the terms of the loan, Johnnie will have to contribute a $12,325 origination fee plus 15% of the purchase price, or $43,500, since there is a 85% LTV. he must then pay $2,054 monthly to East Star Funding Corporation. Assuming Johnnie sells the remodeled house for $348,000 at the end of the 6 month term, his gross profit (not accounting for remodeling expenses) would be $33,350. This is computed by taking the purchase price ($348,000) and subtracting the principle ($246,500), the origination cost ($12,325), the funds he contributed to closing ($43,500), and the total interest expenses ($12,325).
Jimmy takes out a private money bridge loan from Big Lake Funding Company so he can remodel a house to re-sell in the Countryside Northridge Homeowners Assoc area of Palm Harbor, FL. The loan has the following terms:
$390,000 sales price
65% loan-to-value (LTV)
18 month term
8% rate of interest
4% origination fee
Based on a $585,000 sales price at the end of the 18 month term, the final numbers for this project would look like this:
$585,000 sales price
- $253,500 loan principle (65% LTV)
- $136,500 cash paid at closing (35% on 65% LTV)
- $10,140 origination fee (4% of the $253,500 principle amount)
- $30,420 total interest paid (18 months x 8% interest)
-----------------------
= $154,440 gross 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!
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!
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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Gelt Financial LLC was founded in 1989 to help both borrowers and brokers finance their real estate. With loan amounts from $100K-$5M on vacant, non-owner occupied, and owner-occupied properties, Gelt Financial funds both purchases and refinances. Additionally, Gelt provides creative ...
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