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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!
Ketchikan, AK has 34 fix-and-flip lenders serving the city. The mean loan amount is $287,500. Rates on hard money loans issued to Ketchikan borrowers average about 10.8%. The typical loan made in the city is 21 months in length. The average origination percentage applied to loans is 3.9%. Lenders in Ketchikan average a 72% loan to value (LTV) on their loans.
Brown Lending Group makes a hard money loan to Luis for a renovation project in Ketchikan, AK, on a house that is listed for $330,000. The borrower will be required to bring 15% of the sales price in cash to the closing based on a 85% loan to value stipulated by the lending company. This makes the loan principle from Brown Lending Group $280,500. The loan is interest-only, with monthly payments, and is for 6 months at 13% interest with 5 origination points to be paid at the closing.
Luis must fund a total of $32,400 upon closing to pay the $49,500 down payment in addition to the $14,025 origination fee. The monthly interest-only payments will then be $3,039 to Brown Lending Group. If Luis sells the project for $396,000 after 6 months, he would then realize a gross profit of $33,743 after deducting the principle amount of $280,500, the funds paid at the close of $49,500, the origination points of $14,025, and the aggregate interest payments of $18,233. This profit does not account for building costs.
Barbra finds a duplex in Ketchikan, AK to remodel and resell. Because she does not have enough cash to buy the property outright, she takes a fix and flip loan from Acme Lending Group with the following parameters:
a) A $280,000 purchase price, b) a 60% loan-to-value (LTV), c) a 6 month term, d) a 9% interest rate, and e) a 4% origination fee.
Based on a $392,000 sales price after the 6 month term, the outcome for the project would look like the following:
$392,000 sales price
- $168,000 note principle (60% LTV)
- $112,000 down payment (40% on 60% LTV)
- $6,720 origination fee (4% of the $168,000 principle amount)
- $7,560 total interest paid (6 months x 9% interest)
-----------------------
= $97,720 total profit (does not 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!
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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