
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
Pierce, CO has 50 fix and flip lenders operating within the city. Loan amounts average approximately $300,000. Interest rates for private loans average around 10.5%. The typical note issued in this city is 22 months in length. The mean loan includes a 3.0 point origination fee. 76% is the typical loan-to-value for offered by lenders in Pierce.
Christi is an investor in Pierce, CO. She locates a run-down property and decides to rehab it and sell it for a profit. The house has a cost of $280,000 but she doesn't have the full amount so she takes a hard money loan with P & J Funding Group. The terms of the loan include a 75% loan to value (LTV), so she must contribute 25% of the price as cash at closing, making the principle loan amount $210,000. The loan is interest only, paid monthly, and is for 6 months at 9% interest with 2 points to be paid when the deal closes.
Accordingly, the borrower will have to contribute a $70,000 down payment plus pay a $4,200 origination fee. The monthly interest only payments will then be $1,575 to P & J Funding Group. If Christi sells the property for $406,000 after 6 months, she would realize a total profit of $112,350 after subtracting the original principle of $210,000, the cash paid at closing of $70,000, the origination fee of $4,200, and the total interest payments of $9,450. This gross profit doesn't account for renovation costs.
Mario is a an investor in Pierce, CO. He finds an older house for a renovation project and takes out a private money loan from BCC Lending with the following terms:
a) A $400,000 purchase price, b) a 75% loan-to-value (LTV), c) a 6 month term, d) a 8% interest rate, and e) a 1% origination fee.
Mario intends to sell the project when the note expires for $520,000. If he accomplishes his goal, the deal numbers would be as follows:
$520,000 sales price
- $300,000 loan principle (75% LTV)
- $100,000 cash paid at closing (25% on 75% LTV)
- $3,000 origination points (1% of the $300,000 principle)
- $12,000 interest payments (6 months x 8% interest)
-----------------------
= $105,000 gross 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!
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
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.
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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