
We are personally invested in every loan. We deliver easy transactions that are competitively priced and swiftly executed.
Otis Orchards, WA has 50 construction private money lenders serving the city. The mean note amount in the city is $291,667. Interest rates for loans average around 10.2%. The mean note issued in this city is for 12 months. The average loan issued in the city carries a 3.1 point origination cost. The median loan-to-value (LTV) for loans in Otis Orchards is 77%.
Leticia wants to buy a home lot in Otis Orchards, WA and construct a home to re-sell it. Leticia estimates that the construction costs will be about $400,000 and the plot will cost $170,000. She takes out a new construction loan from ABC Lending Corporation with these parameters: 1) a 12 month note at 13% interest, 2) interest-only payments made every month, 3) 5 origination points at the closing by the borrower, and 4) a 80% loan-to-value (LTV) on both the plot and the construction costs. Construction fees are to be paid in draws and there will be no pre-payment penalties assessed. The borrower will have to pay $4,940 monthly in loan payments in addition to $114,000 down, plus a $22,800 origination charge at the closing. If Leticia then sells the property for $710,000 she will make a gross profit of $57,920 after re-paying the principle and subtracting the origination expense and total interest payments.
Rena is a builder who decides to build a home on a vacant lot in Otis Orchards, WA. In order to fund the project, she obtains a new construction loan from Red City Investment Group with the following stipulations:
a) A $220,000 purchase price for the land, b) $150,000 in construction costs, c) an 70% loan-to-value (LTV), d) a 6 month length, e) a 10% interest rate, and f) a 3 point origination fee.
Rena plans to sell the project at the end of the term for $440,000. If she succeeds, the deal numbers will be as follows:
$440,000 sales price
- $259,000 note principle (70% LTV)
- $111,000 cash paid at closing (30% on 70% LTV)
- $7,770 origination points (3% of the $259,000 principle amount)
- $12,950 total interest paid (6 months x 10% interest)
-----------------------
= $49,280 gross profit
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.
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!
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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