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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!
Wheat Ridge, CO has 50 private money lenders operating within the city. In this city, the median amount for loans is $275,000. Rates on private loans made to Wheat Ridge investors average 12.1%. 14 months is the median length for loans offered in the city. The average hard money loan offered in the city includes a 3.6 point origination cost. The mean loan to value (LTV) offered for loans in Wheat Ridge is 71%.
Petra takes a hard money bridge loan from Red View Funding Group in order to rehab a house to flip in the Regis neighborhood of Wheat Ridge, CO. The sales price of the property is $240,000. The lender agrees to issue a note with a 75% loan-to-value (LTV) so they will extend $180,000 on the project. The interest rate on the note is 11% for a term of 12 months and the lender requires a five point origination fee at the closing. The interest payments are to be paid monthly and the principle amount will be repaid after the sale of the property.
Petra will have to contribute $60,000 at closing (25% on the 75% loan to value), plus she will have to pay the $9,000 origination fee. After the loan is executed and Petra takes the project, she will need to begin making payments each month of $1,650 to Red View Funding Group ($180,000 principle x 11% / 12 months). If Petra sells the property for $288,000 after 12 months, she would then make a total profit of $19,200 after subtracting the principle amount of $180,000, the money contributed at the close of $60,000, the origination points of $9,000, and the aggregate interest payments of $19,800. This gross profit doesn't include renovation costs.
Acme Finance makes a private money bridge loan to Elva for a rehab project in the Chaffee Park area of Wheat Ridge, CO. The loan dictates the following:
$280,000 sales price
55% loan-to-value (LTV)
6 month term
8% rate of interest
5% origination fee
Once the renovation project is complete, if Elva sells the project for $336,000, the final numbers would be as follows:
$336,000 sales price
- $154,000 principle on note (55% LTV)
- $126,000 cash paid at closing (45% on 55% LTV)
- $7,700 origination fee (5% of the $154,000 principle amount)
- $6,160 total interest paid (6 months x 8% interest)
-----------------------
= $42,140 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!
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!
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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