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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!
Tujunga, CA has 50 fix and flip lenders serving the city. The mean loan amount is $286,875. Rates on hard money loans made to Tujunga borrowers average around 9.1%. The median loan made in this city is for 16 months. The average origination percentage added to loans is 4.1%. Lenders in Tujunga average a 75% loan to value (LTV) on their deals.
Adrian is an investor in Tujunga, CA. He discovers an run-down property for sale in the Tujunga subdivision and decides to renovate it and resell it for a profit. The property has a cost of $360,000 but he doesn't have the full amount so he takes out a fix and flip loan with Red City Investments. The terms of the loan include a 75% loan to value (LTV), so he must contribute 25% of the price as cash at closing, which makes the principle loan amount $270,000. The note is interest only, paid monthly, and is for 12 months at 9% interest with 2 points paid when the deal closes.
By the terms of the loan, Adrian will be required to contribute a $5,400 origination fee plus 25% of the purchase price, or $90,000, since there is a 75% LTV. The lender will collect $2,025 in monthly interest from the borrower. This is computed by taking the total note value of $270,000, multiplying by the 9% rate of interest, and then dividing that number by 12. If Adrian sells the house for $486,000 after 12 months, he would then make a total profit of $96,300 after subtracting the principle of $270,000, the cash paid at the close of $90,000, the origination fee of $5,400, and the total interest payments of $24,300. This amount doesn't include building costs.
Marlene takes a fix and flip loan from East Shore Funding Group so she can renovate a townhome to resell in the Tujunga neighborhood of Tujunga, CA. The loan has the following parameters:
a) A $300,000 sales price, b) a 85% loan to value (LTV), c) a 12 month term, d) a 11% interest rate, and e) a 5% origination fee.
Once the renovation project is finished, if Marlene sells the project for $360,000, the numbers would be the following:
$360,000 sales price
- $255,000 principle (85% LTV)
- $45,000 cash paid at closing (15% on 85% LTV)
- $12,750 origination points (5% of the $255,000 principle amount)
- $28,050 total interest paid (12 months x 11% interest)
-----------------------
= $19,200 total profit (does not include taxes or rehab 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!
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!
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