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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!
Anacortes, WA has 50 fix-and-flip lenders operating in the city. The mean loan issued to borrowers is approximately $286,786. Rates for private loans average around 11.2%. The average loan issued in the city has a term of 22 months. The average points charged on the loans is 3.1%. Lenders in Anacortes average a 76% loan to value on their loans.
Success Investment Group makes a fix-and-flip loan to Lester for a remodeling project in Anacortes, WA, on a property that costs $380,000. The lender agrees to write a loan with a 70% loan to value (LTV) so they are willing to extend $266,000 on the house. The interest rate on the loan is 10% for a length of 18 months and the company requires a two point origination fee at the closing. The interest is to be paid monthly and the principle amount will be returned after the sale of the property.
By the parameters of the note, Lester will be required to pay a $5,320 origination fee plus 30% of the purchase price, or $114,000, since there is a 70% LTV. The monthly interest-only payments will then total $2,217 to Success Investment Group. Assuming Lester sells the renovated project for $513,000 at the end of the 18 month term, his total profit (not accounting for renovation expenses) would be $87,780. This is calculated by taking the sales price ($513,000) and subtracting the principle ($266,000), the origination fee ($5,320), the cash he contributed to closing ($114,000), and the total interest expenses ($39,900).
Avis is a an investor in Anacortes, WA. She buys a run-down property for a remodeling project and obtains a hard money loan from Blue Square Funding Corporation with the following terms:
$250,000 sales price
75% loan-to-value (LTV)
12 month term
9% rate of interest
4% origination fee
If Avis accomplishes her goal of a $362,500 sales price, the outcome of the project would be as follows:
$362,500 sales price
- $187,500 note principle (75% LTV)
- $62,500 cash paid at closing (25% on 75% LTV)
- $7,500 origination fee (4% of the $187,500 principle)
- $16,875 interest payments (12 months x 9% interest)
-----------------------
= $88,125 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!
Funding Fix & Flip, Ground-Up Construction, and DSCR loans in 35 States. We're the lender for real estate entrepreneurs looking for fast funding, fair pricing, and amazing service.
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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