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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!
Teton Village, WY has 38 private money lenders serving the city. In this city, the average amount loaned is $313,750. Rates on hard money loans issued to Teton Village investors average 10.5%. The median note issued in the city has a term of 22 months. A typical loan offered in this city includes a 3.6 point origination cost. Lenders in Teton Village average a 75% loan-to-value on their deals.
Sidney closes on a $240,000 rehab project in Teton Village, WY, using a private money bridge loan from North Star Funding Group. Because the lender sets a 65% loan-to-value, Sidney will be required to put 35% down so the amount of the loan will be $156,000. The parameters of the loan also stipulate a three point origination fee that will be paid at the closing and a 6 month, interest only note with a 14% rate of interest.
In accordance with the parameters of the deal, Sidney will need to contribute a $4,680 origination fee plus 35% of the purchase price, or $84,000, based on the 65% LTV. After the loan is executed and Sidney takes the project, he will have to begin making payments each month of $1,820 to North Star Funding Group ($156,000 principle x 14% / 12 months). If Sidney sells the property for $300,000 after 6 months, he would realize a total profit of $44,400 after subtracting the principle amount of $156,000, the funds paid at the close of $84,000, the origination points of $4,680, and the total interest payments of $10,920. This profit does not include building costs.
Lara takes out a bridge loan from Smith Lending Company so she can renovate a townhome to flip in Teton Village, WY. The loan has the following parameters:
$380,000 sales price
60% loan-to-value (LTV)
18 month term
10% interest rate
2% origination fee
After the rehab project is finished, if Lara sells the house for $494,000, the numbers would be as follows:
$494,000 sales price
- $228,000 note principle (60% LTV)
- $152,000 cash paid at closing (40% on 60% LTV)
- $4,560 origination fee (2% of the $228,000 principle)
- $34,200 total interest paid (18 months x 10% interest)
-----------------------
= $75,240 total 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!
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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