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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!
Phoenix, AZ has 50 private money lenders offering loans in the city. In this city, the median note amount is $322,143. Rates on hard money loans issued to Phoenix investors average 13.0%. 21 months is the median term for notes issued in the city. The mean loan includes a 3.4 percent origination fee. The typical loan to value (LTV) for loans in Phoenix is 78%.
Patti is a house flipper in Phoenix, AZ. She locates an run-down property for sale in the Central City area and decides to remodel it and resell it for a profit. The property costs $320,000 but she doesn't have the full amount so she takes a hard money loan with Easy Brook Lending Group. The loan to value (LTV) on the deal is 55%. This means Patti will need to bring 45% of the sales price to the closing and the principle will be $176,000 on the note. The note is interest-only, paid monthly, and is for 18 months at 8% interest with 1 origination points to be paid at closing.
Patti will need to contribute $144,000 at closing (45% on the 55% LTV), plus she will have to pay the $1,760 origination fee. Once the deal closes, she will have to pay Easy Brook Lending Group $1,173 in monthly interest payments, or 8% times $176,000 divided by 12 months in a year. If Patti meets her goal of a $464,000 sales price when the loan term expires, she would earn a total profit of $121,120 after re-paying the principle on the note and subtracting the cash she contributed at closing, the origination fee, and the total monthly interest payments.
Dena takes a loan from Rising Sun Finance so she can rehab a townhouse to flip in the Alhambra subdivision of Phoenix, AZ. The deal has the following terms:
a) A $250,000 sales price, b) a 75% loan-to-value (LTV), c) a 12 month term, d) a 12% interest rate, and e) a 1% origination fee.
Once the renovation project is complete, if Dena sells the house for $350,000, the final numbers would be as follows:
$350,000 sales price
- $187,500 note principle (75% LTV)
- $62,500 cash paid at closing (25% on 75% LTV)
- $1,875 origination points (1% of the $187,500 principle)
- $22,500 interest payments (12 months x 12% interest)
-----------------------
= $75,625 gross profit (doesn't include taxes or renovation 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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