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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!
Wakefield, RI has 50 private money lenders operating in the city. The mean amount for loans is $347,222. Interest rates on loans issued to Wakefield investors average about 10.4%. The median loan issued in the city is 17 months in length. The mean loan includes a 2.6 percent origination fee. Lenders offer on average a 71% loan to value (LTV) on loans in Wakefield.
Shawn takes a private money bridge loan from North Shore Investment Group in order to rehab a townhome to flip in Wakefield, RI. The price of the house is $230,000. The borrower will need to bring 40% of the purchase price in cash to the closing based on a 60% loan to value set by the lending company. This makes the principle amount from North Shore Investment Group $138,000. The loan is interest-only, paid monthly, and is for 18 months at 9% interest with 2 origination points to be paid at closing.
Shawn will need to contribute $92,000 to closing (40% on the 60% LTV), plus he will have to pay the $2,760 origination fee. Once the deal closes, he will have to pay the lender $1,035 in monthly interest payments, or 9% multiplied times $138,000 divided by 12 months in a year. If Shawn sells the project for $310,500 after 18 months, he would then make a total profit of $59,110 after deducting the principle of $138,000, the cash paid at closing of $92,000, the origination fee of $2,760, and the aggregate interest payments of $18,630. This amount doesn't include renovation costs.
Lora is a real estate investor in Wakefield, RI. She finds an older house for a rehab project and takes a hard money bridge loan from South Star Lending with the following terms:
a) A $360,000 sales price, b) a 60% loan to value (LTV), c) a 12 month term, d) a 13% interest rate, and e) a 5% origination fee.
Based on a $540,000 sales price at the end of the 12 month term, the final numbers for the project would look like this:
$540,000 sales price
- $216,000 loan principle (60% LTV)
- $144,000 cash paid at closing (40% on 60% LTV)
- $10,800 origination fee (5% of the $216,000 principle amount)
- $28,080 interest payments (12 months x 13% interest)
-----------------------
= $141,120 gross profit (does not include taxes or renovation costs)
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!
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!
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