We help real estate investors secure fast and flexible financing. Whether flipping houses, building new homes, or growing a rental portfolio, we provide the funding you need without long bank delays.
Triangle, VA has 50 fix-and-flip lenders operating within the city. The mean note amount in this city is $296,389. Interest rates for private loans average about 11.7%. 14 months is the mean length for loans issued in this city. The average origination fee for the loans is 3.2 percent. The median LTV for loans in Triangle is 68%.
Darryl takes a hard money loan from Urban Funding Corporation in order to renovate a townhouse to flip in the Quantico Station area of Triangle, VA. The sales price of the property is $390,000. The loan-to-value (LTV) on the loan is 55%. This means Darryl will need to bring 45% of the purchase price to closing and the principle amount will be $214,500 on the note. The parameters of the loan dictate a 12% note for 6 months. They also require a 1 point origination fee, which will also have to be paid upon closing.
Accordingly, Darryl will need to contribute a $175,500 down payment in addition to paying a $2,145 origination fee. Urban Funding Corporation will collect $2,145 in monthly interest from the Darryl. This is computed by taking the total note amount of $214,500, multiplying that by the 12% rate of interest, and then dividing that amount by 12. Assuming Darryl sells the rehabed project for $507,000 at the end of the 6 month term, his gross profit (not including remodeling expenses) would be $101,985. This is computed by taking the purchase price ($507,000) and subtracting the principle ($214,500), the origination cost ($2,145), the money he brought to closing ($175,500), and the total interest expenses ($12,870).
Marylou is a real estate investor in the Quantico Station neighborhood of Triangle, VA. She locates a run-down property for a renovation project and obtains a fix and flip loan from South Shore Lending Group with the following terms:
$380,000 sales price
80% loan to value (LTV)
18 month term
9% rate of interest
3% origination fee
Based on a $456,000 sales price after the 18 month term, the final numbers for this deal would look like the following:
$456,000 sales price
- $304,000 note principle (80% LTV)
- $76,000 down payment (20% on 80% LTV)
- $9,120 origination fee (3% of the $304,000 principle)
- $41,040 total interest paid (18 months x 9% interest)
-----------------------
= $25,840 gross profit (does not include taxes or renovation costs)
We help real estate investors secure fast and flexible financing. Whether flipping houses, building new homes, or growing a rental portfolio, we provide the funding you need without long bank delays.
From quick fix and flip projects to expansive portfolio loans, our tailored financing solutions are here to support your journey towards success.
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 nations largest private lenders to residential real estate investors!
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