
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
A total of 50 records for hard money bridge lenders were found in Wenatchee, WA. The average note made to borrowers is about $293,750. Rates on hard money loans made to Wenatchee investors average around 10.6%. 13 months is the average length for loans issued in this city. The mean origination percentage charged on the loans is 3.0%. The median LTV offered for loans in Wenatchee is 73%.
Naomi is an investor in Wenatchee, WA. She discovers an older property in the South Wenatchee subdivision and wants to renovate it and re-sell it for a profit. The property has a cost of $240,000 but she doesn't have the full amount so she obtains a private money bridge loan with River View Investment Company. The terms of the deal include a 80% loan-to-value (LTV), so she must contribute 20% of the price as cash at closing, making the principle note amount $192,000. The interest rate on the note is 10% for a term of 6 months and the lender requires a five point origination fee at closing. The interest payments are to be paid monthly and the principle amount will be paid back after the property sells.
By the terms of the deal, Naomi will be required to pay a $9,600 origination fee plus 20% of the sales price, or $48,000, based on the 80% LTV. she will then pay $1,600 monthly to the lender. If Naomi sells the project for $312,000 after 6 months, she would earn a gross profit of $52,800 after deducting the principle of $192,000, the cash contributed at closing of $48,000, the origination fee of $9,600, and the total interest payments of $9,600. This gross profit doesn't account for renovation costs.
Rena takes out a bridge loan from Prime Time Funding Group in order to renovate a townhouse to re-sell in the South Wenatchee neighborhood of Wenatchee, WA. The deal has the following terms:
a) A $400,000 sales price, b) a 55% loan to value (LTV), c) a 18 month term, d) a 11% interest rate, and e) a 5% origination fee.
If Rena succeeds in her goal of a $600,000 sales price, the numbers of the deal will be as follows:
$600,000 sales price
- $220,000 note principle (55% LTV)
- $180,000 down payment (45% on 55% LTV)
- $11,000 origination fee (5% of the $220,000 principle)
- $36,300 interest payments (18 months x 11% interest)
-----------------------
= $152,700 gross profit (does not 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!
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