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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!
There are 36 private money lenders serving Plumerville, AR. Note amounts average around $300,556. The average rate for loans in Plumerville is 9.7%. The average length for notes is 20 months. The average points charged on loans is 2.3%. Lenders in Plumerville average a 74% LTV on their deals.
Coastal Finance Group makes a bridge loan to Ruthie for a remodeling project in Plumerville, AR, on a house that is listed for $390,000. The terms of the deal include a 65% loan-to-value (LTV), so she must contribute 35% of the price as cash to closing, which makes the principle loan amount $253,500. The loan also has the following features: 1) a 18 month term, 2) a 9% interest only note, and 3) a five percent origination fee.
In accordance with the terms of the deal, Ruthie will be required to pay a $12,675 origination fee in addition to 35% of the purchase price, or $136,500, since there is a 65% LTV. Once the loan closes, she will have to pay the lender $1,901 in monthly interest fees, or 9% multiplied by $253,500 divided by 12 months in a year. Assuming she sells the remodeled project for $565,500 at the end of the 18 month term, her gross profit (not including remodeling costs) would be $128,603. This is calculated by taking the purchase price ($565,500) and subtracting the original principle ($253,500), the origination fee ($12,675), the money she contributed to closing ($136,500), and the total interest expenses ($34,223).
Stacey locates a townhouse in Plumerville, AR to renovate and resell. Because she does not have enough cash to buy the property outright, she takes a bridge loan from South Side Lending Group with the following parameters:
$270,000 sales price
65% loan-to-value (LTV)
18 month term
9% interest rate
3% origination fee
Stacey intends to sell the project when the note expires for $364,500. If she accomplishes her goal, the final numbers will be the following:
$364,500 sales price
- $175,500 principle on note (65% LTV)
- $94,500 down payment (35% on 65% LTV)
- $5,265 origination fee (3% of the $175,500 principle amount)
- $23,693 total interest paid (18 months x 9% interest)
-----------------------
= $65,543 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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