
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
Willard, UT has 39 private money lenders serving the city. In this city, the median note amount is $420,938. Rates for loans average about 10.9%. 21 months is the median length for loans made in the city. The mean origination fee for loans is 2.9 points. The median loan to value (LTV) for loans in Willard is 73%.
Rita is an investor in Willard, UT. She finds an older property in the South Willard subdivision and wants to remodel it and resell it for a profit. The property costs $400,000 but she doesn't have the full amount so she obtains a private money bridge loan with Sunrise Investments. Since the lender agrees to a 80% loan to value, Rita will be required to put 20% down so the total amount of the note will be $320,000. The parameters of the loan also stipulate a five percent origination fee which is to be paid at closing and a 6 month, interest-only note with a 10% interest rate.
The borrower must bring a total of $32,400 up front to pay the $80,000 down payment in addition to the $16,000 origination fee. After the deal is executed and Rita takes on the project, she will have to begin making payments each month of $2,667 to Sunrise Investments ($320,000 principle x 10% / 12 months). Rita's intention is to complete the project within the 6 months and resell it for $540,000. If she succeeds she will collect a profit of $108,000 ($540,000 price - $320,000 principle amount - $80,000 cash at closing - $16,000 origination fee - $16,000 in interest.
Dina finds a house in the South Willard area of Willard, UT to rehab and sell. Since she does not have enough cash to buy the property outright, she takes a bridge loan from Blue Door Lending with the following parameters:
$270,000 purchase price
50% loan-to-value (LTV)
18 month term
8% interest rate
5% origination fee
Dina plans to sell the project at the end of the term for $364,500. If she achieves this goal, the deal numbers would be the following:
$364,500 sales price
- $135,000 note principle (50% LTV)
- $135,000 cash paid at closing (50% on 50% LTV)
- $6,750 origination fee (5% of the $135,000 principle)
- $16,200 total interest paid (18 months x 8% interest)
-----------------------
= $71,550 total profit (does not 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!
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