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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!
North Pole, AK has 34 fix-and-flip hard money lenders serving the city. The mean loan amount in the city is $284,375. Rates for loans average 11.0%. The average note issued in this city is for 39 months. A typical hard money loan issued in the city carries a 3.0 point origination fee. 74% is the median loan to value (LTV) for offered by lenders in North Pole.
Chandra closes on a $180,000 renovation project in North Pole, AK, using a fix and flip loan from Red View Investment Company. The borrower will have to fund 30% of the sales price in cash to closing based on a 70% loan to value set by the lending company. This makes the principle amount from Red View Investment Company $126,000. The interest rate on the loan is 9% for a length of 6 months and the company requires a three point origination fee at the closing. The interest is to be paid monthly and the principle will be repaid after the sale of the property.
Chandra will need to contribute $54,000 to closing (30% on the 70% loan to value), plus she will pay the $3,780 origination fee. Once the deal closes, she will pay the lender $945 in monthly interest fees, or 9% multiplied times $126,000 divided by 12 months in the year. If Chandra accomplishes her goal of a $270,000 sales price when the loan term expires, she would collect a gross profit of $80,550 after repaying the principle amount and subtracting the money she paid at closing, the origination points, and the total interest payments.
Brian finds a townhouse in North Pole, AK to renovate and re-sell. Because he does not have enough cash to buy the property outright, he takes a fix and flip loan from BCC Funding Company with the following parameters:
$380,000 purchase price
70% loan to value (LTV)
6 month term
13% interest rate
2% origination fee
Brian intends to list the house at the end of the term for $494,000. If he achieves this goal, the final numbers would be as follows:
$494,000 sales price
- $266,000 note principle (70% LTV)
- $114,000 down payment (30% on 70% LTV)
- $5,320 origination fee (2% of the $266,000 principle amount)
- $17,290 total interest paid (6 months x 13% interest)
-----------------------
= $91,390 total profit (does not 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!
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!
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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