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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!
There are 50 fix-and-flip lenders operating in Grosse Pointe, MI. The mean note amount in the city is $293,750. The mean interest rate for hard money loans in Grosse Pointe is 10.7%. The average loan made in the city has a term of 22 months. The mean note includes a 3.3 percent origination fee. The mean loan-to-value (LTV) offered for loans in Grosse Pointe is 73%.
Barry finds a house in the Jefferson Chalmers subdivision of Grosse Pointe, MI to flip and re-sell. Since he doesn't have enough cash to acquire the $180,000 property outright, he decides to take out a hard money loan from Rising Sun Finance Group. Because the lender agrees to a 65% loan to value, Barry will be required to put 35% down and the total amount of the note will be $117,000. The loan also consists of these features: 1) a 6 month length, 2) a 10% interest-only note, and 3) a five point origination fee.
On top of the $5,850 origination fee, Barry will also have to fund $63,000 of the purchase with his own funds, or 35% of the sales price. After the loan is closed and Barry takes over the project, he will begin making payments each month of $975 to the lender ($117,000 principle x 10% / 12 months). If Barry accomplishes his goal of a $243,000 total sales price at the end of the loan term, he would make a total profit of $51,300 after re-paying the principle and deducting the money he brought to closing, the origination points, and the total interest payments.
Willie is a real estate investor in the East English Village area of Grosse Pointe, MI. He purchases an older house for a rehab project and takes out a private money loan from Blue Door Finance Company with the following paramters:
$330,000 purchase price
65% loan-to-value (LTV)
18 month term
14% interest rate
1% origination fee
Based on a $429,000 sales price at the end of the 18 month term, the outcome for this project would look like this:
$429,000 sales price
- $214,500 loan principle (65% LTV)
- $115,500 down payment (35% on 65% LTV)
- $2,145 origination points (1% of the $214,500 principle amount)
- $45,045 total interest paid (18 months x 14% interest)
-----------------------
= $51,810 total profit (doesn't 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!
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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Based in Baltimore, MD, EZ Money Lending Co is an asset-based lender offering funding in 9 states across the US. They offer lending solutions for a variety of situations, including private commercial loans and fix-and-flip hard money loans. ...
Dr Daniels and Son is hard money lender headquartered in Bloomfield Hills, MA. They offer funding throughout Michigan. They offer lending solutions for many different scenarios, including commercial loans, bridge loans, and fix-and-flip loans. They ...
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