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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!
Valley Farms, AZ has 50 hard money lenders operating in the city. The mean amount for loans in the city is $432,500. The mean interest rate for loans in Valley Farms is 12.1%. The mean length for notes is 19 months. A typical hard money loan made in the city carries a 4.1 point origination fee. Lenders offer on average a 74% loan-to-value (LTV) on deals in Valley Farms.
Martha finds a townhouse in Valley Farms, AZ to remodel and sell. Since she does not have enough cash on-hand to acquire the $220,000 project outright, she decides to take out a hard money loan from Top Notch Funding. The loan-to-value (LTV) on the deal is 60%. This means that Martha will need to bring 40% of the purchase price to the closing and the principle will be $132,000 on the deal. The terms of the deal dictate a 8% note for 12 months. They also stipulate a 3 point origination fee, which will also be paid upon closing.
Martha will need to fund a total of $32,400 upon closing to pay the $88,000 down payment plus the $3,960 origination fee. she must then pay $880 monthly to the lender. Martha's intention is to finish the house by the end of the 12 months and sell it for $308,000. If she succeeds she will make a profit of $73,480 ($308,000 price - $132,000 principle - $88,000 cash at closing - $3,960 origination points - $10,560 in total interest.
Jordan is a real estate investor in Valley Farms, AZ. He buys a run-down townhouse for a remodeling project and takes a private money loan from Oceanside Investment Company with the following features:
a) A $320,000 sales price, b) a 60% loan to value (LTV), c) a 6 month term, d) a 14% interest rate, and e) a 3% origination fee.
If Jordan accomplishes his goal of a $416,000 sales price, the outcome of the deal will be as follows:
$416,000 sales price
- $192,000 principle (60% LTV)
- $128,000 cash paid at closing (40% on 60% LTV)
- $5,760 origination fee (3% of the $192,000 principle)
- $13,440 interest payments (6 months x 14% interest)
-----------------------
= $76,800 gross profit (doesn't include taxes or rehab 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!
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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