A private lender that’s willing to fully finance?

4 Replies

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

   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.

   Hope this helps!

- Mike


@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.

Just to give you an idea on how the criteria would be set up on a 100% financing Deal 

The borrower would need to show about 15% LTC in liquid assets to cover closing costs Origination fee 3rd party fees and reserves. 

Deal needs to be at 65% ARV or below

Rates from 12%-14% 

interest only 

(Not available in all states)