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

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