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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!
Cockeysville, MD has 50 private money lenders in the city. In this city, the median note amount is $385,000. Interest rates for hard money loans average 11.4%. The median note issued in this city has a term of 16 months. The mean loan includes a 3.5 percent origination charge. Lenders typically offer a 78% LTV on deals in Cockeysville.
Blue Mountain Investment Corporation makes a loan to Curtis for a renovation project in Cockeysville, MD, on a property that costs $160,000. Because the lender agrees to a 60% loan to value, Curtis will have to put 40% down and the total amount of the loan will be $96,000. The rate on the loan is 12% for a length of 12 months and the company requires a two point origination fee at the closing. The interest payments are to be paid on a monthly basis and the principle amount will be repaid after the property sells.
The borrower will need to bring a total of $32,400 upon closing to pay the $64,000 down payment in addition to the $1,920 origination fee. After the loan closes, he will need to pay Blue Mountain Investment Corporation $960 in monthly interest fees, or 12% multiplied by $96,000 divided by 12 months in a year. If Curtis sells the house for $240,000 after 12 months, he would then realize a total profit of $66,560 after deducting the principle of $96,000, the cash paid at the close of $64,000, the origination fee of $1,920, and the total interest payments of $11,520. This profit doesn't include rehab costs.
Chad locates a property in Cockeysville, MD to renovate and sell. Since he does not have enough cash to buy the property outright, he takes a hard money loan from Yellow Sun Investment Corporation with the following parameters:
$390,000 sales price
55% loan to value (LTV)
6 month term
14% interest rate
1% origination fee
Once the rehab project is completed, if Chad sells the house for $565,500, the outcome would be the following:
$565,500 sales price
- $214,500 note principle (55% LTV)
- $175,500 cash paid at closing (45% on 55% LTV)
- $2,145 origination fee (1% of the $214,500 principle)
- $15,015 total interest paid (6 months x 14% interest)
-----------------------
= $158,340 total profit (doesn't 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!
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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