Is this a good deal?

2 Replies

I spoke to a lender, and this is the information he gave me. Is this a good deal

"We fund 100% of construction and acquisition up to 65% of the ARV. We can approve the same day and close in 24hrs. Normally we are about 1.167% per month for a 12 month note. The money is 4 points at the table".

USE OF FUNDS

PURCHASE OR REFINANCE ($ 75,000.00) Purchase Price

RECORDATION TAX 0.40%

TRANSFER TAX 0.40%

LENDER LEGAL FEES ($ 725.00) estimate

TITLE INSURANCE & CLOSING ($ 1,500.00) estimate

DUE DILIGENCE ($ 400.00) Valuation/Inspection

LESS: DUE DILIGENCE

LENDER FEE ($ 2,800.00) 0.04

FUNDING FEE ($ 995.00)

FLAT REFERRAL FEE

REHAB RESERVE ($ 40,000.00) Construction holdback

PROPERTY TAXES ($ -  ) estimate

HAZARD INSURANCE ($ 850.00) estimate

CONSTRUCTION DRAWS $150 EACH ($ 750.00) 5

INTEREST RESERVE:

Broker Fee

TOTAL ($ 123,020.00)

@Malvin Cuevas The terms you describe are typical for Hard money. Some areas get better rates some pay more.  however in your breakdown I don't see how the cost of the loan adds up to almost $50k

@Malvin Cuevas 14% 8nterest and 4 points is on the high side but not unreasonable.

I'd like to see how they close in 24 hours....

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