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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!
Turners Falls, MA has 50 hard money lenders in the city. In this city, the mean loan amount is $312,500. Rates on hard money loans issued to Turners Falls borrowers average about 11.4%. The average loan issued in the city is 16 months in length. The mean note includes a 2.7 percent origination charge. The typical loan-to-value (LTV) offered for loans in Turners Falls is 73%.
Redwood Funding Group makes a hard money loan to Ronnie for a rehab project in Turners Falls, MA, on a house that is listed for $310,000. The loan-to-value (LTV) on the loan is 50%. This means that Ronnie will bring 50% of the sales price to closing and the principle amount will be $155,000 on the deal. The interest rate on the note is 14% for a length of 18 months and the company requires a two point origination fee at the closing. The interest is to be paid monthly and the principle will be paid back after the sale of the property.
Therefore, Ronnie will need to contribute a $155,000 down payment plus pay a $3,100 origination fee. Once the deal is executed and Ronnie takes over the property, he will have to begin making monthly payments of $1,808 to the lender ($155,000 principle x 14% / 12 months). If Ronnie achieves his goal of a $403,000 sales price when the loan expires, he would earn a gross profit of $57,350 after repaying the principle and subtracting the money he paid at closing, the origination points, and the total monthly interest payments.
Willa is a an investor in Turners Falls, MA. She locates a run-down property for a rehab project and takes a private money loan from Presitge Investment Group with the following paramters:
$260,000 purchase price
85% loan-to-value (LTV)
18 month term
12% rate of interest
3% origination fee
If Willa succeeds in her goal of a $312,000 sales price, the numbers of the project would be as follows:
$312,000 sales price
- $221,000 principle on note (85% LTV)
- $39,000 cash paid at closing (15% on 85% LTV)
- $6,630 origination fee (3% of the $221,000 principle)
- $39,780 total interest paid (18 months x 12% interest)
-----------------------
= $5,590 total profit (doesn't include taxes or rehab 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!
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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