
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
Mantoloking, NJ has 50 hard money lenders serving the city. The median loan amount is $302,857. The median interest rate for loans in Mantoloking is 10.1%. The mean loan issued in the city has a length of 23 months. The average loan includes a 1.7 percent origination cost. Lenders in Mantoloking average a 73% loan-to-value on their deals.
Nadine closes on a $150,000 renovation project in Mantoloking, NJ, using a private money loan from West Star Lending Group. The loan-to-value (LTV) on the loan is 80%. This means that Nadine will have to bring 20% of the sales price to closing and the principle amount will be $120,000 on the loan. The deal also consists of the following features: 1) a 18 month length, 2) a 9% interest-only note, and 3) a two point origination fee.
Nadine will have to bring $30,000 to the closing (20% on the 80% LTV), plus she will need to pay the $2,400 origination fee. West Star Lending Group will collect $900 in monthly interest from the Nadine. This is computed by taking the full loan value of $120,000, multiplying that by the 9% interest rate, and then dividing that amount by 12. If Nadine sells the property for $210,000 after 18 months, she would then make a total profit of $41,400 after deducting the original principle of $120,000, the money paid at the close of $30,000, the origination points of $2,400, and the aggregate interest payments of $16,200. This gross profit doesn't account for building costs.
Raquel locates a townhouse in Mantoloking, NJ to renovate and re-sell. Because she does not have enough cash to buy the property outright, she takes a hard money loan from Axis Investment Group with the following parameters:
$310,000 sales price
55% loan-to-value (LTV)
6 month term
14% rate of interest
4% origination fee
If Raquel accomplishes her goal of a $372,000 sales price, the numbers of the project will be the following:
$372,000 sales price
- $170,500 loan principle (55% LTV)
- $139,500 cash paid at closing (45% on 55% LTV)
- $6,820 origination points (4% of the $170,500 principle)
- $11,935 total interest paid (6 months x 14% interest)
-----------------------
= $43,245 total profit (doesn't include taxes or rehab costs)
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
With more than $12.3B in funded loans, Kiavi is one of the nation’s largest private lenders to residential real estate investors!
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