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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!
Englewood, CO has 50 fix-and-flip lenders serving the city. In this city, the average amount loaned is $292,188. Rates on hard money loans issued to Englewood investors average 11.7%. The median note issued in the city has a term of 34 months. A typical loan offered in this city includes a 3.0 point origination cost. Lenders in Englewood average a 73% loan-to-value on their deals.
Advanced Investment Company makes a fix-and-flip loan to Casey for a rehab project in the Harvey Park subdivision of Englewood, CO, on a property that is listed for $400,000. The loan to value (LTV) on the deal is 85%. This means Casey will have to bring 15% of the purchase price to the closing and the principle will be $340,000 on the note. The rate on the note is 11% for a term of 12 months and the lender requires a four point origination fee at closing. The interest is to be paid on a monthly basis and the principle will be returned after the sale of the property.
On top of the $13,600 origination fee, Casey will also have to fund $60,000 of the purchase with his own money, or 15% of the purchase price. After the loan closes, he will need to pay Advanced Investment Company $3,117 in monthly interest fees, or 11% times $340,000 divided by 12 months in the year. If Casey sells the house for $540,000 after 12 months, he would realize a total profit of $89,000 after subtracting the principle of $340,000, the funds paid at closing of $60,000, the origination points of $13,600, and the total interest payments of $37,400. This gross profit does not account for remodeling costs.
Ivan is a an investor in the Harvey Park South neighborhood of Englewood, CO. He purchases an older townhouse for a rehab project and takes a fix and flip loan from Johnson Investment Group with the following paramters:
a) A $200,000 purchase price, b) a 80% loan-to-value (LTV), c) a 6 month term, d) a 13% interest rate, and e) a 1% origination fee.
Assuming a $260,000 sales price at the end of the 6 month term, the outcome for this project would look like the following:
$260,000 sales price
- $160,000 note principle (80% LTV)
- $40,000 cash paid at closing (20% on 80% LTV)
- $1,600 origination fee (1% of the $160,000 principle)
- $10,400 interest payments (6 months x 13% interest)
-----------------------
= $48,000 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!
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