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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!
Cavetown, MD has 50 private money lenders serving the city. The median amount loaned is $293,929. The median interest rate for loans in Cavetown is 10.7%. 27 months is the median term for loans offered in the city. A typical hard money loan made in the city includes a 3.8 percent origination cost. 74% is the mean LTV offered for offered by lenders in Cavetown.
Number One Lending Corporation issues a private money loan to Erik for a rehab project in the Cavetown area of Cavetown, MD, on a house that is listed for $330,000. The loan to value (LTV) on the deal is 75%. This means that Erik will bring 25% of the sales price to closing and the principle amount will be $247,500 on the loan. The loan also has these features: 1) a 12 month term, 2) a 12% interest-only note, and 3) a two point origination charge.
Accordingly, the borrower will have to make a $82,500 down payment in addition to paying a $4,950 origination fee. After the loan closes, he will pay Number One Lending Corporation $2,475 in monthly interest payments, or 12% multiplied times $247,500 divided by 12 months in the year. If Erik meets his goal of a $462,000 total sales price at the end of the loan term, he would collect a gross profit of $97,350 after re-paying the principle on the note and subtracting the money he brought to closing, the origination fee, and the total interest payments.
Andy locates a duplex in the Cavetown subdivision of Cavetown, MD to remodel and re-sell. Since he does not have enough cash to buy the property outright, he takes a hard money loan from K & M Funding Group with the following parameters:
$290,000 purchase price
80% loan-to-value (LTV)
18 month term
10% interest rate
5% origination fee
Assuming a $377,000 sales price after the 18 month term, the numbers for the project would look like this:
$377,000 sales price
- $232,000 principle on note (80% LTV)
- $58,000 down payment (20% on 80% LTV)
- $11,600 origination fee (5% of the $232,000 principle amount)
- $34,800 total interest paid (18 months x 10% interest)
-----------------------
= $40,600 total profit (does not include taxes or renovation 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!
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.
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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