I have been hearing a lot about hard money lenders that are willing to fully finance a deal with a 4%-14% fee. What are the typical logistics of the hard money Lender lending at this rate?
@Barry Inge a typical hard money lender will lend 80% - 90% of the purchase price and 100% of the rehab. They'll charge between 2 and 5 points, and usually be in the 10% - 15% interest range. It'll vary based on credit, experience, and the property itself.
Every hard money lender varies. Even the one I use will vary his rates depending on the deal.
I've done a couple that were near fully financed at a 12% interest rate and just lined up lenders before hand that would refinance them without a seasoning period. I'd recommend finding those lenders as well, and that they lend on appraised value not purchase price before committing to a hard money deal.
@Barry Inge a typical hard money lender will lend 80% - 90% of the purchase price and 100% of the rehab. They'll charge between 2 and 5 points, and usually be in the 10% - 15% interest range. It'll vary based on credit, experience, and the property itself.
@Barry Inge HML usually lends on 75-85% of Purchase Price and 75-85% of Rehab Cost. Some don't charge any points but the 25% is almost always needed for a newer investor. Also, the rehab works on a Draw Basis so that means you need to have some money up front to start your rehab.