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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!
Kaaawa, HI has 50 hard money lenders offering loans in the city. Loan amounts average approximately $316,072. Rates on private loans issued to Kaaawa borrowers average 11.5%. 17 months is the median term for loans made in the city. The average hard money loan made in this city includes a 4.7 point origination cost. Lenders typically offer a 73% LTV on hard money loans in Kaaawa.
Perfect Funding Company makes a private money loan to Terry for a remodeling project in the Waikane subdivision of Kaaawa, HI, on a property that costs $360,000. The lender agrees to write a note with a 80% loan-to-value (LTV) so they will loan $288,000 on the house. The note is interest only, with monthly payments, and is for 6 months at 13% interest with 3 points to be paid at closing.
Terry will have to bring $72,000 to closing (20% on the 80% loan to value), plus she will need to pay the $8,640 origination fee. The lender will collect $3,120 in monthly interest from the borrower. This is calculated by taking the total note value of $288,000, multiplying that by the 13% rate of interest, and then dividing that amount by 12. At the expiration of the note, she sells the rehabed property for $522,000. After deducting the $18,720 in total interest payments ($3,120 multiplied by 6 months), the $8,640 origination fee, the $288,000 principle amount on the note, and the $72,000 she brought to the closing, she will make a gross profit of $134,640 ($522,000 price minus $387,360 in total costs). This amount would be reduced by any renovation costs paid out of pocket.
Kent locates a townhouse in the Waikane subdivision of Kaaawa, HI to rehab and re-sell. Because he does not have enough cash to buy the property outright, he takes a hard money loan from North Shore Funding Company with the following parameters:
a) A $190,000 purchase price, b) a 75% loan to value (LTV), c) a 12 month term, d) a 14% interest rate, and e) a 2% origination fee.
If Kent accomplishes his goal of a $247,000 sales price, the final numbers of the project will be the following:
$247,000 sales price
- $142,500 loan principle (75% LTV)
- $47,500 down payment (25% on 75% LTV)
- $2,850 origination fee (2% of the $142,500 principle)
- $19,950 interest payments (12 months x 14% interest)
-----------------------
= $34,200 gross profit (does not include taxes or rehab costs)
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!
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.
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Temple View Capital is a private lender headquartered in Bethesda, MD. They provide loans in 46 states throughout the US. They provide short-term and long-term fix and flip loans, loans for rental properties, bridge loans, and ground-up new construction loans ...
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