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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.
Cosby, MO has 50 fix-and-flip lenders offering loans in the city. The average note issued is about $286,000. Rates on private loans made to Cosby investors average 11.2%. The typical loan issued in this city is for 13 months. The average note includes a 3.5 point origination charge. 76% is the typical loan-to-value offered for for loans in Cosby.
Wallace is an investor in Cosby, MO. He locates an older property and wants to remodel it and flip it for a profit. The house costs $200,000 but he does not have the full amount so he obtains a private money loan with BCC Investment Group. The loan-to-value (LTV) on the loan is 75%. This means Wallace will have to bring 25% of the purchase price to closing and the principle will be $150,000 on the deal. The terms of the deal also stipulate a four percent origination fee which is to be paid at closing and a 18 month, interest-only note with a 12% interest rate.
In accordance with the terms of the loan, Wallace will need to pay a $6,000 origination fee plus 25% of the purchase price, or $50,000, since there is a 75% LTV. The monthly interest-only payments will then total $1,500 to the lender. Wallace's plan is to finish the project within the 18 months and resell it for $260,000. If he succeeds he will collect a total profit of $27,000 ($260,000 price - $150,000 principle - $50,000 cash paid at closing - $6,000 origination points - $27,000 in interest.
Gordon locates a townhouse in Cosby, MO to renovate and resell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from Coastal Investment Group with the following parameters:
a) A $210,000 purchase price, b) a 80% loan to value (LTV), c) a 18 month term, d) a 12% interest rate, and e) a 5% origination fee.
Assuming a $252,000 sales price after the 18 month term, the final numbers for this project would look like this:
$252,000 sales price
- $168,000 note principle (80% LTV)
- $42,000 cash paid at closing (20% on 80% LTV)
- $8,400 origination points (5% of the $168,000 principle)
- $30,240 interest payments (18 months x 12% interest)
-----------------------
= $3,360 total profit (doesn't include taxes or rehab costs)
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.
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
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!
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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