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The ORIGINAL LENDER of NOT requiring any of the below: NO Application, tax returns, credit check, appraisals, pre-inspection, prepay penalty, upfront fees, survey, bank statements or employment!
Duncanville, TX has 50 fix and flip hard money lenders offering loans within the city. Note amounts average around $362,500. The average rate for private loans in Duncanville is 10.2%. The typical length for notes is 32 months. The average loan offered in the city carries a 2.4 point origination fee. The median loan to value for loans in Duncanville is 72%.
Ann takes a hard money loan from East Shore Finance Corporation in order to renovate a property to flip in the Wolf Creek neighborhood of Duncanville, TX. The list price of the property is $230,000. The loan-to-value (LTV) on the loan is 75%. This means Ann will need to bring 25% of the sales price to the closing and the principle will be $172,500 on the note. The interest rate on the loan is 8% for a term of 6 months and the company requires a four point origination fee at the close. The interest is to be paid on a monthly basis and the principle amount will be returned after the property sells.
By the parameters of the deal, Ann will have to pay a $6,900 origination fee in addition to 25% of the sales price, or $57,500, since there is a 75% LTV. After the deal is executed and Ann takes the project, she will need to begin making payments each month of $1,150 to the lender ($172,500 principle x 8% / 12 months). If Ann accomplishes her goal of a $345,000 total sales price at the end of the loan term, she would collect a total profit of $101,200 after repaying the principle on the note and deducting the cash she brought to closing, the origination points, and the total monthly interest payments.
All State Funding Company issues a fix and flip loan to Frieda for a renovation project in the Five Mile Creek neighborhood of Duncanville, TX. The deal dictates the following:
a) A $160,000 sales price, b) a 60% loan to value (LTV), c) a 6 month term, d) a 12% interest rate, and e) a 3% origination fee.
Assuming a $208,000 sales price after the 6 month term, the numbers for the project would look like the following:
$208,000 sales price
- $96,000 note principle (60% LTV)
- $64,000 cash paid at closing (40% on 60% LTV)
- $2,880 origination points (3% of the $96,000 principle)
- $5,760 total interest paid (6 months x 12% interest)
-----------------------
= $39,360 total profit (does not include taxes or renovation costs)
The ORIGINAL LENDER of NOT requiring any of the below: NO Application, tax returns, credit check, appraisals, pre-inspection, prepay penalty, upfront fees, survey, bank statements or employment!
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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!
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