12% interest Caveat loan

[Chiara Poderi]

Hi Bigger Pockets network, 

I found a last resource to purchase my new primary: a private lender that will give me the funds ASAP at 12 % interest and used my 3 homes as collateral. Two of those homes my husband and I own (paid off and one has a 35k HELOC). The lender would be using the property currently under contract as collateral as well. The two homes we own are for sale (one listed a couple of weeks ago for 524 K and the other will be listed in February for 195 to 215 K). Are these terms you would take if you were in my position? (12% interest and all of my 3 homes as collateral to purchase my new primary/fixer upper with a monthly payment for $4,800. Interest seems super high and taking the 3 homes as collateral leaves me no much room to rehab the property under contract. Can you recommend someone that can give me better terms? Less than 12% interest and use two homes instead of 3 as collateral? The property under contract I want as my primary is 395 K and in the most excellent location, river front and 3 residential structures are allowed in the land. Thanks in advance. More details to be provided, of course. Respectfully...

[Greg Scott]

I don't see it as an issue if you get out of that loan ASAP after one or more of the others sell.  What you have is also known as a Hard Money Loan.