Kansas City Rehab Funding

About Kansas City Rehab Funding

Based in Overland Park, KS, Kansas City Rehab Funding is a private lender providing funding throughout Kansas and Missouri. They offer fix and flip loans and loans for investments properties. Their lending guidelines are versatile, including rates from 12%, terms between 6 months and 12 months, and loans with a maximum LTV of 65%. They will consider different loan scenarios but usually focus on single family units and multi family residences.

Loan Types Offered: Investment Property Loans, Fix and Flip Loans

Property Types Covered: Single Family, Multi Family

Areas Served: KS, MO

Lending Guidelines for Kansas City Rehab Funding

Below are the general loan guidelines published on the Kansas City Rehab Funding website. Please confirm all terms and rates directly with the lender.

Loan Examples

The following loans are for education purposes only. They do not represent actual loans executed by Kansas City Rehab Funding.

Loan Example 1

Aaron takes a fix and flip loan from Kansas City Rehab Funding in order to remodel a property to resale in St Louis, MO. The sales price of the house is $290,000. The borrower will have to contribute 25% of the sales price in cash to closing based on a 75% loan to value set by the lending company. This makes the loan principle from Kansas City Rehab Funding $217,500. The interest rate on the note is 11% for a length of 12 months and the lender requires a four point origination fee at closing. The interest payments are to be paid on a monthly basis and the principle amount will be paid back after the property sells.

The borrower must fund a total of $32,400 upon closing to pay the $72,500 down payment in addition to the $8,700 origination fee. he will then pay $1,994 per month to the lender. Assuming Aaron sells the renovated house for $406,000 at the end of the 12 month term, his gross profit (not accounting for remodeling costs) would be $83,375. This is calculated by taking the purchase price ($406,000) and subtracting the original principle ($217,500), the origination cost ($8,700), the cash he contributed to closing ($72,500), and the total interest expenses ($23,925).

Loan Example 2

Darren locates a property in St Louis, MO to remodel and resell. Since he does not have enough cash to buy the property outright, he takes a fix and flip loan from Kansas City Rehab Funding with the following parameters:

a) A $390,000 sales price, b) a 70% loan to value (LTV), c) a 18 month term, d) a 13% interest rate, and e) a 1% origination fee.

If Darren accomplishes his goal of a $487,500 sales price, the final numbers of the project will be as follows:

$487,500 sales price
- $273,000 note principle (70% LTV)
- $117,000 down payment (30% on 70% LTV)
- $2,730 origination points (1% of the $273,000 principle amount)
- $53,235 total interest paid (18 months x 13% interest)
-----------------------
= $41,535 total profit (doesn't include taxes or renovation costs)

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