
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
Safety Harbor, FL has 50 fix and flip lenders serving the city. Note amounts average approximately $298,215. Rates for hard money loans average 10.7%. The typical term for loans is 25 months. The average loan includes a 4.0 point origination cost. Lenders in Safety Harbor average a 74% LTV on their loans.
Jean takes a fix and flip loan from Easy Brook Finance Corporation in order to remodel a property to resale in the Northwood Estates Homeowners Association subdivision of Safety Harbor, FL. The list price of the house is $200,000. The loan to value (LTV) on the loan is 75%. This means Jean will bring 25% of the purchase price to closing and the principle will be $150,000 on the deal. The rate on the note is 14% for a length of 12 months and the company requires a three point origination fee at the closing. The interest payments are to be paid monthly and the principle will be repaid after the property sells.
The borrower will need to bring a total of $32,400 upon closing to cover the $50,000 down payment plus the $4,500 origination fee. Easy Brook Finance Corporation will collect $1,750 in monthly interest from the borrower. This is calculated by taking the full note value of $150,000, multiplying by the 14% rate of interest, and then dividing that amount by 12. Jean's intention is to finish the rehab by the end of the 12 months and re-sell it for $250,000. If she succeeds she will collect a gross profit of $24,500 ($250,000 sales price - $150,000 principle - $50,000 funds brough to closing - $4,500 origination fee - $21,000 in total interest.
Andrea locates a house in the Del Oro Groves Homeowners Association neighborhood of Safety Harbor, FL to rehab and resell. Since she does not have enough cash to buy the property outright, she takes a fix and flip loan from Deep Lake Investments with the following parameters:
a) A $250,000 sales price, b) a 60% loan-to-value (LTV), c) a 12 month term, d) a 14% interest rate, and e) a 4% origination fee.
Assuming a $362,500 sales price at the end of the 12 month term, the outcome for this project would look like the following:
$362,500 sales price
- $150,000 principle (60% LTV)
- $100,000 down payment (40% on 60% LTV)
- $6,000 origination fee (4% of the $150,000 principle)
- $21,000 total interest paid (12 months x 14% interest)
-----------------------
= $85,500 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.
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