
The ORIGINAL LENDER of NOT requiring any of the below: NO Application, tax returns, credit check, appraisals, pre-inspection, prepay penalty, upfront fees, survey, bank statements or employment!
Mercedes, TX has 50 construction private money lenders issuing loans in the city. The mean note made to borrowers is about $404,063. The mean rate for private loans in Mercedes is 10.6%. The typical length for notes is 14 months. The average loan issued in this city includes a 2.8 percent origination charge. Lenders in Mercedes average a 75% loan-to-value (LTV) on their loans.
Bonita decides to purchase a land lot in the Heidelberg area of Mercedes, TX to construct a new home in order to sell it. Bonita estimates that the construction costs will be about $400,000 and the plot is listed for $180,000. In order to pay for the transaction, she takes out a construction loan from Mountain Rock Lending. They agree to make a loan with a 8% rate of interest for 6 months and five origination points to be paid at closing. They also agree to fund 55% of the total costs (the loan to value or "LTV"). They agree not to charge a pre-payment penalty and they will pay out the construction costs in multiple draws. According to the specifications of this loan, Bonita will be required to fund $261,000 plus $15,950 in origination costs at the closing, then will start making $2,127 per month payments. Bonita's goal is to sell the project for $720,000. If she succeeds, she will make a total profit of $111,290 after deducting all expenses ($319,000 principle amount, $261,000 cash down, $15,950 origination fee and $12,760 for 6 months of payments).
Sean decides to acquire a home lot in the Indian Hills neighborhood of Mercedes, TX to construct a new duplex and resell it. He takes a construction loan from Cordial Finance Company with the following stipulations:
a) A $230,000 sales price for the vacant lot, b) $400,000 in building costs, c) an 65% loan-to-value (LTV), d) a 12 month term, e) a 8% rate of interest, and f) a 5% origination fee.
If Sean achieves his goal of a $850,000 sale, the final numbers of the deal would be as follows:
$850,000 sales price
- $409,500 principle on note (65% LTV)
- $220,500 down payment (35% on 65% LTV)
- $20,475 origination points (5% of the $409,500 principle amount)
- $32,760 interest payments (12 months x 8% interest)
-----------------------
= $166,765 total profit
The ORIGINAL LENDER of NOT requiring any of the below: NO Application, tax returns, credit check, appraisals, pre-inspection, prepay penalty, upfront fees, survey, bank statements or employment!
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
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!
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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The ORIGINAL LENDER of NOT requiring any of the below: - NO Application - NO Tax Returns- NO Credit Check - NO Appraisals - NO Pre-Inspection - NO Prepay Penalty - NO Upfront Fee - NO Survey - NO Bank ...
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