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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!
Palmer, AK has 34 fix-and-flip lenders serving the city. The median loan made is around $289,063. Rates for hard money loans average about 10.8%. The median length for loans is 41 months. The mean loan includes a 2.2 percent origination fee. The average loan-to-value (LTV) for loans in Palmer is 75%.
Melba closes on a $240,000 renovation project in the Lazy Mountain area of Palmer, AK, using a hard money loan from Big City Finance. As the lender sets a 80% loan-to-value, Melba will have to put 20% down and the amount of the note will be $192,000. The terms of the deal dictate a 14% note for 18 months. They also stipulate a 5 point origination fee, that will also need to be paid when the property closes.
In addition to paying the $9,600 origination fee, Melba will also have to fund $48,000 of the purchase with her own cash, or 20% of the purchase price. Big City Finance will collect $2,240 in monthly interest from the Melba. This is computed by taking the full note value of $192,000, multiplying by the 14% rate of interest, and then dividing that amount by 12. Melba's plan is to finish the renovation by the end of the 18 months and re-sell it for $288,000. If she succeeds she will collect a gross profit of $-1,920 ($288,000 price - $192,000 principle amount - $48,000 down payment - $9,600 origination fee - $40,320 in total interest.
Wesley takes a hard money loan from Advanced Investment Company in order to renovate a townhome to resell in the Butte neighborhood of Palmer, AK. The loan has the following parameters:
$200,000 purchase price
65% loan-to-value (LTV)
12 month term
11% rate of interest
4% origination fee
Based on a $300,000 sales price at the end of the 12 month term, the outcome for the project would look like the following:
$300,000 sales price
- $130,000 note principle (65% LTV)
- $70,000 down payment (35% on 65% LTV)
- $5,200 origination fee (4% of the $130,000 principle)
- $14,300 interest payments (12 months x 11% interest)
-----------------------
= $80,500 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!
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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