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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!
Fenton, MO has 50 fix and flip hard money lenders operating in the city. In this city, the average loan amount is $276,500. The average rate for loans in Fenton is 10.1%. 15 months is the average length for loans made in this city. The mean note includes a 3.0 percent origination charge. The median loan to value for loans in Fenton is 74%.
Edward is a house flipper in Fenton, MO. He discovers an run-down property in the Murphy area and wants to remodel it and sell it for a profit. The property has a cost of $340,000 but he doesn't have the full amount so he takes out a private money loan with Allstar Investment Company. The loan to value (LTV) on the deal is 80%. This means that Edward will have to bring 20% of the purchase price to closing and the principle amount will be $272,000 on the deal. The parameters of the loan dictate a 11% note for 12 months. They also require a 5 point origination fee, which will also be paid when the property closes.
Therefore, Edward will have to contribute a $68,000 down payment plus pay a $13,600 origination fee. Allstar Investment Company will collect $2,493 in monthly interest payments from the borrower. This is computed by taking the full note value of $272,000, multiplying that by the 11% rate of interest, and then dividing that number by 12. Edward's plan is to finish the project within the 12 months and sell it for $425,000. If he succeeds he will collect a gross profit of $41,480 ($425,000 sales price - $272,000 principle amount - $68,000 funds brough to closing - $13,600 origination fee - $29,920 in total interest paid.
Lois takes out a loan from K & M Investment Company in order to rehab a house to resell in the Murphy neighborhood of Fenton, MO. The loan has the following terms:
a) A $230,000 sales price, b) a 75% loan to value (LTV), c) a 12 month term, d) a 8% interest rate, and e) a 3% origination fee.
Lois intends to sell the property when the note expires for $287,500. If she succeeds, the deal numbers will be as follows:
$287,500 sales price
- $172,500 loan principle (75% LTV)
- $57,500 cash paid at closing (25% on 75% LTV)
- $5,175 origination points (3% of the $172,500 principle)
- $13,800 total interest paid (12 months x 8% interest)
-----------------------
= $38,525 gross profit (doesn't include taxes or renovation costs)
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!
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!
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.
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