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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!
Warren, MI has 50 private money lenders operating in the city. The mean note made is approximately $291,072. Rates on hard money loans made to Warren borrowers average around 11.2%. 15 months is the mean term for notes issued in the city. The mean origination fee added to the loans is 4.1%. 70% is the median loan-to-value for offered by lenders in Warren.
Jenny finds a townhome in Warren, MI to renovate and resell. Since she does not have enough cash to acquire the $330,000 house outright, she takes out a hard money loan from Victory Finance Company. The loan-to-value (LTV) on the note is 50%. This means Jenny will need to bring 50% of the sales price to closing and the principle amount will be $165,000 on the deal. The terms of the deal dictate a 14% note for 18 months. They also stipulate a 4 point origination fee, which will also have to be paid upon closing.
Therefore, Jenny will need to make a $165,000 down payment plus pay a $6,600 origination fee. she will then pay $1,925 monthly to Victory Finance Company. Jenny's intention is to complete the renovation by the end of the 18 months and resell it for $429,000. If she succeeds she will make a gross profit of $57,750 ($429,000 price - $165,000 principle amount - $165,000 down payment - $6,600 origination points - $34,650 in total interest paid.
North End Lending Group issues a hard money loan to Catalina for a remodeling project in Warren, MI. The loan includes the following:
a) A $150,000 sales price, b) a 65% loan to value (LTV), c) a 12 month term, d) a 12% interest rate, and e) a 1% origination fee.
If Catalina achieves her goal of a $195,000 sales price, the final numbers of the project will be as follows:
$195,000 sales price
- $97,500 note principle (65% LTV)
- $52,500 down payment (35% on 65% LTV)
- $975 origination points (1% of the $97,500 principle amount)
- $11,700 interest payments (12 months x 12% interest)
-----------------------
= $32,325 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!
Temple View Capital is a private lender headquartered in Bethesda, MD. They provide loans in 46 states throughout the US. They provide short-term and long-term fix and flip loans, loans for rental properties, bridge loans, and ground-up new construction loans ...
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