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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!
Ridgetop, TN has 45 lenders operating within the city. Loan amounts average around $292,500. Rates for hard money loans average around 10.3%. The mean term for loans is 16 months. A typical hard money loan issued in this city includes a 3.0 point origination charge. Lenders in Ridgetop average a 68% LTV on their loans.
Hattie takes a private money bridge loan from Deep Lake Lending Group in order to renovate a duplex to resale in the Fox Chase Meadows area of Ridgetop, TN. The price of the property is $330,000. The lender agrees to write a loan with a 85% loan to value (LTV) so they are willing to extend $280,500 on the property. The loan also includes the following features: 1) a 6 month length, 2) a 9% interest-only note, and 3) a three point origination fee.
In accordance with the parameters of the note, Hattie will be required to contribute a $8,415 origination fee plus 15% of the sales price, or $49,500, based on the 85% LTV. she must then pay $2,104 per month to Deep Lake Lending Group. If Hattie meets her goal of a $462,000 total sales price at the end of the loan term, she would collect a gross profit of $110,963 after repaying the principle on the note and subtracting the cash she contributed at closing, the origination fee, and the total interest payments.
Rita takes out a private money bridge loan from City Finance Company in order to rehab a townhome to re-sell in the Grizzard Manor area of Ridgetop, TN. The deal has the following terms:
$160,000 sales price
70% loan to value (LTV)
18 month term
9% rate of interest
4% origination fee
If Rita succeeds in her goal of a $192,000 sales price, the final numbers of the deal would be as follows:
$192,000 sales price
- $112,000 note principle (70% LTV)
- $48,000 down payment (30% on 70% LTV)
- $4,480 origination fee (4% of the $112,000 principle)
- $15,120 total interest paid (18 months x 9% interest)
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= $12,400 total profit (doesn't include taxes or renovation costs)
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!
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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