About Down Kicker
Down Kicker is a San Francisco, CA based private lender offering loans all across the United States. Their lending focus is primarily on short term fix and flip loans. They primarily offer loans on single family homes.
Loan Types Offered: Fix and Flip Loans
Property Types Covered: Single Family
Areas Served: National
Fix and Flip LoansLoan Amounts: N/A
Available Rates: N/A
Typical Terms: N/A
Points Charged: N/A
Max Loan-to-Value (LTV): N/A
Max Loan-to-Cost (LTC): N/A
Owner Occupied Allowed: N/A
Interest Only Loans: N/A
Prepayment Penalties: N/A
Minimum FICO Score: N/A
Time to Close: N/A
Loan Example 1
Frankie finds a property in Salem, OR to flip and resell. Since she does not have enough cash on-hand to acquire the $350,000 house outright, she decides to take out a fix-and-flip loan from Down Kicker. The lender agrees to issue a note with a 70% loan to value (LTV) so they are willing to extend $245,000 on the property. The parameters of the loan also include a four point origination fee that is to be paid at closing and a 18 month, interest-only note with a 8% interest rate.
Frankie will have to contribute a total of $32,400 upon closing to cover the $105,000 down payment in addition to the $9,800 origination fee. Once the loan closes, she will pay Down Kicker $1,633 in monthly interest fees, or 8% multiplied times $245,000 divided by 12 months in a year. If Frankie sells the house for $455,000 after 18 months, she would make a gross profit of $65,800 after subtracting the original principle of $245,000, the funds paid at closing of $105,000, the origination fee of $9,800, and the total interest payments of $29,400. This amount does not include rehab costs.
Loan Example 2
Felix is a real estate investor in San Antonio, TX. He finds an older house for a rehab project and takes a fix and flip loan from Down Kicker with the following features:
a) A $270,000 purchase price, b) a 65% loan to value (LTV), c) a 6 month term, d) a 14% interest rate, and e) a 2% origination fee.
Once the rehab project is completed, if Felix sells the property for $405,000, the outcome would be as follows:
$405,000 sales price
- $175,500 note principle (65% LTV)
- $94,500 cash paid at closing (35% on 65% LTV)
- $3,510 origination fee (2% of the $175,500 principle)
- $12,285 total interest paid (6 months x 14% interest)
= $119,205 gross profit (doesn't include taxes or rehab costs)
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