
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
There are 50 hard money lenders offering bridge loans in Shallotte, NC. Note amounts average about $295,000. Interest rates on hard money loans made to Shallotte borrowers average 10.6%. The mean term for loans is 18 months. The mean origination percentage applied to the loans is 2.8%. The average loan-to-value (LTV) for loans in Shallotte is 74%.
Maryann closes on a $300,000 rehab project in Shallotte, NC, using a private money bridge loan from Riverside Funding Group. Since the lender agrees to a 80% loan to value, Maryann will have to put 20% down and the total amount of the note will be $240,000. The rate on the note is 9% for a length of 12 months and the company requires a three point origination fee at the close. The interest payments are to be paid monthly and the principle amount will be repaid after the sale of the property.
Maryann will need to contribute $60,000 at closing (20% on the 80% loan to value), plus she will have to pay the $7,200 origination fee. After the deal is executed and Maryann takes the project, she will begin making monthly payments of $1,800 to Riverside Funding Group ($240,000 principle x 9% / 12 months). At the expiration of the loan, she sells the renovated property for $390,000. After subtracting the $21,600 in total interest payments ($1,800 multiplied by 12 months), the $7,200 origination fee, the $240,000 principle on the loan, and the $60,000 she brought to the closing, she will make a gross profit of $61,200 ($390,000 sales price minus $328,800 in costs). This profit would then be reduced by any rehab costs paid by Maryann.
Calvin takes out a bridge loan from Urban Investments so he can remodel a townhouse to re-sell in Shallotte, NC. The deal has the following terms:
$380,000 sales price
80% loan-to-value (LTV)
18 month term
13% interest rate
4% origination fee
Once the rehab project is completed, if Calvin sells the project for $456,000, the numbers would be the following:
$456,000 sales price
- $304,000 principle on note (80% LTV)
- $76,000 cash paid at closing (20% on 80% LTV)
- $12,160 origination points (4% of the $304,000 principle)
- $59,280 interest payments (18 months x 13% interest)
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= $4,560 total profit (does not include taxes or renovation costs)
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
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!
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