Case Study: The Bank vs A Private Lender
Which makes more sense for funding your next deal?
September 26, 2024
Do you know the REAL difference between financing your deals through the bank vs through a direct private lender?
Here’s a quick Case Study:
One investor came to us with 2 existing loans for a new construction project he’d financed through his bank
The 2 loans covered 20 townhomes with the following terms:
Loan 1:
9 townhomes
Rate: 7%
Term: 20 years
Current balance: $1,935,000
Loan 2:
11 townhomes
Rate: 7.5%
Term: 20 years
Current balance: $1,760,000
Total monthly payment for both loans, including taxes and insurance: $33,375
As a private lender, we were able to offer the following terms as a refinance opportunity:
20 Townhomes (1 unified loan)
Term: 30 Years
Rate: 6.75%
Loan Amount: $3,820,000
Monthly payment, including taxes and insurance: $29,151.45
The borrower saves $32,682.60 per year with the new loan
Investors often think that they couldn’t possibly get a better deal on their financing than they could through their own bank
But, as a private lender, we’re usually able to offer better terms than your bank
Better terms aren’t the only benefit of working with us though
Our loans also fund faster, with less paperwork and hassle
But that’s not all, because it’s also easy to pick up the phone (or email) anytime and get ahold of your loan officer to check how your loan is doing, unlike with most banks
At Kybele, we pride ourselves on excellence in communication above all else
Would you consider a private lender for your next deal?
If so, fill out the form below for a consultation with a loan officer
Get up to $10M to Fund Your Next Real Estate Project
- No income verification, minimal docs
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- Get funded as fast as 14 days
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