
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.
Tortilla Flat, AZ has 50 hard money lenders offering loans in the city. In this city, the average loan amount is $300,000. The average rate for private loans in Tortilla Flat is 10.6%. The typical length offered for loans is 26 months. The mean origination for loans is 3.3 points. Lenders in Tortilla Flat average a 74% LTV on their deals.
Lula takes a loan from Top Dog Funding in order to remodel a duplex to flip in Tortilla Flat, AZ. The sales price of the house is $260,000. The loan-to-value (LTV) on the note is 75%. This means Lula will bring 25% of the sales price to closing and the principle amount will be $195,000 on the note. The parameters of the note also include a four point origination fee which will be paid at closing and a 6 month, interest-only note with a 11% rate of interest.
Accordingly, Lula will be required to make a $65,000 down payment in addition to paying a $7,800 origination fee. she will then pay $1,788 monthly to Top Dog Funding. At the end of the note, she sells the rehabed house for $377,000. After deducting the $10,725 in total interest payments ($1,788 times 6 months), the $7,800 origination fee, the $195,000 principle amount on the note, and the $65,000 she brought to closing, she will earn a total profit of $98,475 ($377,000 sales price minus $278,525 in total costs). This profit would then be reduced by any rehab costs paid by Lula.
Marshall finds a townhouse in Tortilla Flat, AZ to remodel and re-sell. Because he does not have enough cash to buy the property outright, he takes a hard money loan from All American Funding Corporation with the following parameters:
$300,000 purchase price
65% loan-to-value (LTV)
6 month term
14% interest rate
1% origination fee
Based on a $435,000 sales price at the end of the 6 month term, the numbers for the deal would look like the following:
$435,000 sales price
- $195,000 principle on note (65% LTV)
- $105,000 cash paid at closing (35% on 65% LTV)
- $1,950 origination fee (1% of the $195,000 principle)
- $13,650 interest payments (6 months x 14% interest)
-----------------------
= $119,400 total profit (does not include taxes or rehab costs)
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.
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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