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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!
Santa Teresa, NM has 50 fix and flip lenders issuing loans in the city. Note amounts average around $304,167. The mean rate for loans in Santa Teresa is 10.6%. The average loan made in this city has a term of 19 months. The mean origination for loans is 2.8 percent. Lenders typically offer a 77% loan-to-value on hard money loans in Santa Teresa.
Alfred closes on a $190,000 rehab project in Santa Teresa, NM, using a fix-and-flip loan from K & M Finance Corporation. The terms of the note include a 55% loan to value (LTV), so he must bring 45% of the price as cash to closing, which makes the principle note amount $104,500. The loan also consists of these features: 1) a 12 month term, 2) a 12% interest-only note, and 3) a two point origination charge.
Therefore, the borrower will have to contribute a $85,500 down payment plus pay a $2,090 origination fee. he must then pay $1,045 per month to K & M Finance Corporation. At the end of the note, he sells the renovated house for $275,500. After subtracting the $12,540 in total interest payments ($1,045 times 12 months), the $2,090 origination fee, the $104,500 principle amount on the note, and the $85,500 he contributed to the closing, he will earn a gross profit of $70,870 ($275,500 price minus $204,630 in total costs). This amount would be reduced by any building costs paid by Alfred.
Hazel takes a hard money loan from BCC Lending Company in order to remodel a townhouse to flip in Santa Teresa, NM. The loan has the following terms:
$330,000 sales price
50% loan to value (LTV)
12 month term
8% rate of interest
2% origination fee
Based on a $429,000 sales price after the 12 month term, the final numbers for this project would look like the following:
$429,000 sales price
- $165,000 principle (50% LTV)
- $165,000 cash paid at closing (50% on 50% LTV)
- $3,300 origination points (2% of the $165,000 principle)
- $13,200 total interest paid (12 months x 8% interest)
-----------------------
= $82,500 gross 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!
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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