
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
Sparks, NV has 50 fix and flip lenders operating within the city. The mean loan amount in the city is $293,000. The mean interest rate for loans in Sparks is 10.6%. The median length offered for notes is 14 months. The average origination percentage charged on the loans is 3.0%. 72% is the average LTV offered for offered by lenders in Sparks.
Sonia takes a fix and flip loan from Credence Lending Group in order to rehab a house to resale in the Spanish Springs area of Sparks, NV. The list price of the property is $260,000. The loan-to-value (LTV) on the loan is 85%. This means that Sonia will have to bring 15% of the purchase price to the closing and the principle amount will be $221,000 on the deal. The note is interest-only, paid monthly, and is for 6 months at 10% interest with 5 points paid at closing.
Accordingly, Sonia will need to make a $39,000 down payment plus pay a $11,050 origination fee. she must then pay $1,842 per month to Credence Lending Group. If Sonia sells the project for $312,000 after 6 months, she would then make a total profit of $29,900 after subtracting the principle amount of $221,000, the money paid at closing of $39,000, the origination fee of $11,050, and the aggregate interest payments of $11,050. This amount does not account for renovation costs.
Dora is a real estate investor in the Spanish Springs neighborhood of Sparks, NV. She finds a run-down house for a renovation project and obtains a private money loan from K & M Finance Group with the following terms:
a) A $390,000 purchase price, b) a 70% loan to value (LTV), c) a 18 month term, d) a 8% interest rate, and e) a 2% origination fee.
Assuming a $487,500 sales price after the 18 month term, the final numbers for this deal would look like the following:
$487,500 sales price
- $273,000 note principle (70% LTV)
- $117,000 down payment (30% on 70% LTV)
- $5,460 origination points (2% of the $273,000 principle)
- $32,760 interest payments (18 months x 8% interest)
-----------------------
= $59,280 total profit (doesn't 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!
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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