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We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
North Chili, NY has 50 hard money lenders operating in the city. The average amount loaned is $370,834. Interest rates on private loans issued to North Chili borrowers average about 10.6%. The mean loan made in this city is for 57 months. The average points charged for the loans is 2.8%. 68% is the mean LTV for for loans in North Chili.
Shelia is a real estate investor in North Chili, NY. She finds a run-down property and decides to rehab it and re-sell it for a profit. The property costs $220,000 but she does not have the full amount so she takes a hard money loan with Blue Mountain Lending Company. The loan to value (LTV) on the note is 85%. This means that Shelia will need to bring 15% of the purchase price to the closing and the principle will be $187,000 on the loan. The terms of the loan also stipulate a two point origination fee that will be paid at the closing and a 6 month, interest only note with a 11% rate of interest.
In accordance with the parameters of the note, Shelia will be required to contribute a $3,740 origination fee plus 15% of the purchase price, or $33,000, since there is a 85% LTV. The lender will collect $1,714 in monthly interest from the borrower. This is computed by taking the full note value of $187,000, multiplying by the 11% rate of interest, and then dividing that amount by 12. Shelia's intention is to finish the house within the 6 months and re-sell it for $286,000. If she succeeds she will collect a profit of $51,975 ($286,000 price - $187,000 principle - $33,000 funds brough to closing - $3,740 origination fee - $10,285 in total interest.
Jill is a an investor in North Chili, NY. She locates a run-down house for a remodeling project and takes a private money loan from Axis Investments with the following terms:
a) A $150,000 purchase price, b) a 70% loan-to-value (LTV), c) a 12 month term, d) a 14% interest rate, and e) a 3% origination fee.
Based on a $187,500 sales price after the 12 month term, the numbers for this deal would look like this:
$187,500 sales price
- $105,000 principle (70% LTV)
- $45,000 cash paid at closing (30% on 70% LTV)
- $3,150 origination points (3% of the $105,000 principle amount)
- $14,700 total interest paid (12 months x 14% interest)
-----------------------
= $19,650 total profit (does not include taxes or renovation 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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