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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!
Chesapeake Beach, MD has 50 private money lenders offering loans within the city. In this city, the average note amount is $292,709. Interest rates for hard money loans average about 11.8%. The mean note issued in the city has a term of 12 months. The mean loan includes a 3.4 point origination charge. The median LTV offered for loans in Chesapeake Beach is 67%.
Peter is a real estate investor in Chesapeake Beach, MD. He discovers a run-down property for sale and wants to renovate it and resell it for a profit. The house has a cost of $240,000 but he does not have the full amount so he takes a private money loan with North Shore Finance Corporation. The terms of the note include a 70% loan-to-value (LTV), so he must contribute 30% of the price as cash at closing, which makes the principle loan amount $168,000. The parameters of the deal dictate a 8% note for 12 months. They also require a 5 point origination fee, that will also need to be paid upon closing.
In addition to paying the $8,400 origination fee, Peter will also need to fund $72,000 of the purchase with his own money, or 30% of the sales price. he will then pay $1,120 monthly to the lender. At the end of the loan, he sells the rehabed house for $336,000. After subtracting the $13,440 in interest payments ($1,120 multiplied by 12 months), the $8,400 origination fee, the $168,000 principle amount on the loan, and the $72,000 he contributed to closing, he will earn a gross profit of $74,160 ($336,000 sales price minus $261,840 in costs). This profit would then be reduced by any renovation costs paid by Peter.
Tracie takes out a private money loan from Blue Sky Funding in order to renovate a house to re-sell in Chesapeake Beach, MD. The deal has the following terms:
$180,000 sales price
70% loan-to-value (LTV)
18 month term
11% interest rate
3% origination fee
Once the rehab project is complete, if Tracie sells the house for $270,000, the outcome would be as follows:
$270,000 sales price
- $126,000 note principle (70% LTV)
- $54,000 cash paid at closing (30% on 70% LTV)
- $3,780 origination fee (3% of the $126,000 principle)
- $20,790 total interest paid (18 months x 11% interest)
-----------------------
= $65,430 gross 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!
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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