
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
Rio Grande City, TX has 50 lenders issuing loans in the city. The mean loan made is around $365,556. Rates on loans made to Rio Grande City investors average around 10.6%. The average length offered for notes is 25 months. The mean origination for loans is 3.1 points. Lenders typically offer a 71% loan-to-value on hard money loans in Rio Grande City.
Ruben finds a house in Rio Grande City, TX to renovate and re-sell. Since he doesn't have enough cash on-hand to buy the $310,000 property outright, he decides to take out a bridge loan from Downtown Finance. The borrower will have to bring 25% of the sales price in cash to the closing based on a 75% loan to value stipulated by the lending company. This makes the principle note from Downtown Finance $232,500. The note is interest only, paid monthly, and is for 6 months at 10% interest with 3 origination points to be paid at the closing.
Accordingly, Ruben will have to make a $77,500 down payment plus pay a $6,975 origination fee. After the deal is closed and Ruben takes on the property, he will have to begin making payments each month of $1,938 to Downtown Finance ($232,500 principle x 10% / 12 months). If Ruben sells the property for $387,500 after 6 months, he would make a gross profit of $58,900 after subtracting the principle amount of $232,500, the funds paid at the close of $77,500, the origination fee of $6,975, and the total interest payments of $11,625. This amount doesn't account for rehab costs.
Ocean View Funding Group issues a bridge loan to Ryan for a remodeling project in Rio Grande City, TX. The loan dictates the following:
a) A $250,000 purchase price, b) a 50% loan to value (LTV), c) a 12 month term, d) a 13% interest rate, and e) a 3% origination fee.
Assuming a $350,000 sales price at the end of the 12 month term, the final numbers for the deal would look like this:
$350,000 sales price
- $125,000 note principle (50% LTV)
- $125,000 down payment (50% on 50% LTV)
- $3,750 origination points (3% of the $125,000 principle amount)
- $16,250 total interest paid (12 months x 13% interest)
-----------------------
= $80,000 total profit (doesn't include taxes or rehab costs)
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
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!
The ORIGINAL LENDER of NOT requiring any of the below: NO Application, tax returns, credit check, appraisals, pre-inspection, prepay penalty, upfront fees, survey, bank statements or employment!
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