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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!
Newton, MA has 50 private money lenders offering loans within the city. Loan amounts average approximately $315,625. Interest rates on loans issued to Newton borrowers average about 12.4%. 14 months is the median term for notes issued in this city. The average loan includes a 3.0 percent origination cost. Lenders in Newton average a 70% LTV on their deals.
Cathy is a house flipper in Newton, MA. She locates a run-down property for sale and decides to renovate it and sell it for a profit. The property has a cost of $280,000 but she doesn't have the full amount so she obtains a private money loan with South Side Finance Corporation. The borrower will need to contribute 50% of the sales price in cash to closing based on a 50% loan to value set by the lender. This makes the principle note from South Side Finance Corporation $140,000. The note is interest-only, with monthly payments, and is for 12 months at 12% interest with 5 origination points paid at closing.
Therefore, the borrower will need to contribute a $140,000 down payment in addition to paying a $7,000 origination fee. The monthly interest-only payments will then be $1,400 to the lender. If Cathy achieves her goal of a $406,000 total sales price when the loan expires, she would make a gross profit of $102,200 after re-paying the principle and subtracting the money she paid at closing, the origination points, and the monthly interest payments.
Green Fern Funding issues a private money loan to Clara for a rehab project in Newton, MA. The deal dictates the following:
a) A $170,000 sales price, b) a 70% loan-to-value (LTV), c) a 18 month term, d) a 9% interest rate, and e) a 5% origination fee.
Assuming a $212,500 sales price after the 18 month term, the final numbers for this project would look like this:
$212,500 sales price
- $119,000 loan principle (70% LTV)
- $51,000 down payment (30% on 70% LTV)
- $5,950 origination fee (5% of the $119,000 principle amount)
- $16,065 interest payments (18 months x 9% interest)
-----------------------
= $20,485 total profit (doesn't 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!
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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