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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!
Rigby, ID has 43 private money bridge lenders operating in the city. Loan amounts average approximately $275,000. Interest rates for hard money loans average 11.1%. The mean note issued in this city is for 22 months. The average hard money loan made in this city includes a 4.3 point origination cost. Lenders typically offer a 70% loan to value (LTV) on hard money loans in Rigby.
Maritza takes a private money bridge loan from All American Finance Group in order to remodel a property to flip in Rigby, ID. The sales price of the house is $240,000. Because the lender sets a 80% loan to value, Maritza will be required to put 20% down and the total amount of the note will be $192,000. The rate on the note is 14% for a term of 12 months and the company requires a two point origination fee at the closing. The interest is to be paid monthly and the principle amount will be repaid after the sale of the property.
Maritza will have to bring $48,000 at the closing (20% on the 80% LTV), plus she will have to pay the $3,840 origination fee. After the deal is closed and Maritza takes over the project, she will have to begin making monthly payments of $2,240 to the lender ($192,000 principle x 14% / 12 months). At the expiration of the note, she sells the renovated house for $312,000. After subtracting the $26,880 in total interest payments ($2,240 multiplied times 12 months), the $3,840 origination fee, the $192,000 principle on the note, and the $48,000 she contributed to closing, she will make a gross profit of $41,280 ($312,000 price minus $270,720 in costs). This profit would then be reduced by any renovation costs paid out of pocket.
River View Lending Group makes a bridge loan to Sheila for a rehab project in Rigby, ID. The loan includes the following:
$320,000 sales price
80% loan to value (LTV)
12 month term
9% interest rate
1% origination fee
Sheila plans to list the project at the end of the term for $416,000. If she accomplishes her goal, the outcome would be the following:
$416,000 sales price
- $256,000 note principle (80% LTV)
- $64,000 down payment (20% on 80% LTV)
- $2,560 origination points (1% of the $256,000 principle amount)
- $23,040 interest payments (12 months x 9% interest)
-----------------------
= $70,400 gross profit (doesn't include taxes or renovation 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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