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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!
Warwick, RI has 50 fix-and-flip hard money lenders serving the city. The median amount for loans in the city is $308,334. Rates on hard money loans made to Warwick investors average about 12.3%. 32 months is the median term for loans made in the city. The mean note includes a 3.6 point origination charge. Lenders in Warwick average a 77% loan to value (LTV) on their deals.
Fannie closes on a $170,000 rehab project in Warwick, RI, using a hard money loan from Top Dog Funding Corporation. Since the lender sets a 70% loan to value, Fannie will be required to put 30% down and the total amount of the note will be $119,000. The note is interest only, paid monthly, and is for 18 months at 11% interest with 3 points to be paid at closing.
Therefore, the borrower will be required to contribute a $51,000 down payment in addition to paying a $3,570 origination fee. Once the deal closes, she will have to pay Top Dog Funding Corporation $1,091 in monthly interest fees, or 11% times $119,000 divided by 12 months in the year. If Fannie meets her goal of a $212,500 total sales price when the loan expires, she would make a gross profit of $19,295 after repaying the principle amount and subtracting the cash she paid at closing, the origination points, and the monthly interest payments.
Guy is a real estate investor in Warwick, RI. He purchases a run-down house for a rehab project and takes out a private money loan from Suburban Lending with the following terms:
a) A $330,000 purchase price, b) a 80% loan to value (LTV), c) a 12 month term, d) a 13% interest rate, and e) a 5% origination fee.
Based on a $495,000 sales price at the end of the 12 month term, the final numbers for this deal would look like this:
$495,000 sales price
- $264,000 principle (80% LTV)
- $66,000 cash paid at closing (20% on 80% LTV)
- $13,200 origination fee (5% of the $264,000 principle amount)
- $34,320 total interest paid (12 months x 13% interest)
-----------------------
= $117,480 total 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!
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!
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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