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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!
Clovis, NM has 45 fix-and-flip lenders in the city. The median loan made to borrowers is approximately $278,125. Interest rates for private loans average about 10.8%. The mean length for loans is 17 months. The mean points charged on loans is 2.8%. 73% is the typical loan to value for for loans in Clovis.
Bradley finds a house in Clovis, NM to remodel and resell. Since he doesn't have enough cash available to buy the $280,000 house outright, he decides to take out a fix-and-flip loan from Evergreen Lending Corporation. The borrower will need to contribute 45% of the sales price in cash to the closing based on a 55% loan-to-value stipulated by the lending company. This makes the principle note from Evergreen Lending Corporation $154,000. The terms of the loan dictate a 10% note for 18 months. They also require a 4 point origination fee, which will also be paid upon closing.
Bradley must bring a total of $32,400 up front to pay the $126,000 down payment plus the $6,160 origination fee. Once the deal is closed and Bradley takes the property, he will have to begin making monthly payments of $1,283 to the lender ($154,000 principle x 10% / 12 months). If Bradley sells the property for $336,000 after 18 months, he would then earn a gross profit of $26,740 after subtracting the principle amount of $154,000, the funds paid at the close of $126,000, the origination points of $6,160, and the total interest payments of $23,100. This amount doesn't include building costs.
Hugh takes out a fix and flip loan from K & M Finance Company so he can remodel a townhome to resell in Clovis, NM. The deal has the following parameters:
$180,000 sales price
60% loan-to-value (LTV)
6 month term
10% interest rate
1% origination fee
Hugh intends to sell the project at the end of the term for $261,000. If he achieves this goal, the deal numbers would be the following:
$261,000 sales price
- $108,000 principle (60% LTV)
- $72,000 down payment (40% on 60% LTV)
- $1,080 origination points (1% of the $108,000 principle amount)
- $5,400 interest payments (6 months x 10% interest)
-----------------------
= $74,520 gross profit (does not include taxes or renovation costs)
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
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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