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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!
Newton, NH has 35 new construction hard money lenders in the city. The average amount for loans is $333,334. Interest rates on loans issued to Newton investors average 11.8%. The median length offered for notes is 15 months. The mean note includes a 2.4 point origination cost. 72% is the median loan to value (LTV) offered for for loans in Newton.
Erik is a home builder and wants to build a home on a land lot in Newton, NH. Erik thinks that the construction expenses will be around $250,000 and the lot will cost $390,000. Flourish Investment Company will loan on the transaction at a 70% loan to value (LTV) with a 14%, 12 month new construction loan with 4 origination points to be paid when the transaction closes. Construction fees are to be paid out in draws and there are no pre-payment penalties. According to this loan scenario, the lender will contribute $448,000 of the plot and construction expenses. The borrower will have to pay $192,000 down, a $17,920 origination fee, and $5,227 per month in loan payments. When the loan expires, Erik sells the house for $920,000. This will make Erik a $199,360 gross profit after re-paying all expenses of the loan ($448,000 principle amount, $192,000 cash at closing, $17,920 origination fee, and $62,720 for 12 months of interest payments).
Nelson is a real estate investor and wants to acquire a lot in Newton, NH to construct a single family home. He obtains a new construction loan from River View Funding Company with the following terms:
a) A $270,000 purchase price for the vacant plot, b) $200,000 in construction costs, c) an 75% loan-to-value (LTV), d) a 6 month term, e) a 8% interest rate, and f) a 3% origination fee.
Nelson plans to sell the property when the note expires for $680,000. If he achievs this goal, the final numbers will be the following:
$680,000 sales price
- $352,500 principle (75% LTV)
- $117,500 down payment (25% on 75% LTV)
- $10,575 origination fee (3% of the $352,500 principle)
- $14,100 interest payments (6 months x 8% interest)
-----------------------
= $185,325 total profit
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!
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!
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