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
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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