Is there any sort of website or app that compares HML rates?

Question

I have portfolio of properties with no leverage, and I have considered using Hard Money Loans (HML) to create some cash for additional opportunities. Thing is, there are more than 100 listed on BP for So Cal alone. I am aware of one well known firm that has rolled out a 6.9% 3 year term loan, which seems like a pretty good rate. And I know of some institutional investors that have entered this space with similar rates. However, I also know the world is awash with capital, and it is possible that there are lesser known companies out there offering even better rates for seasoned, low LTV situations. Short of making 100 calls, are there any tools anyone can point me to that compare HML rates?

If not, maybe BP should list not only the HML by area, but also rate range? Now that would be useful.

If not, maybe BP should list not only the HML by area, but also rate range?  Now that would be useful.

Darrell Shepherd · Answer

That's not really a normal HML loan, they are usually for quick flips because the rates are so high.

LendingHome has a long term product, they are out of California (I broker for them), its basically a 5/1 ARM at LIBOR +4.75%.  Does have prepayment penalties.

Lima One has a better one, but I dont think they are in California with it.  Its a true 30 year, 5-8%.  It has some prepays too.

I dont know of anyone compiling a list of HML's or their rates.  The vast majority of HML's are small or brokers and not really registered anywhere.  The guys doing long term stuff are Wall St. funded, though.  The guys lending their own or brokering private money need to churn it, they make their money on the origination.  But you're right, the capital is coming in, both those long term programs I mentioned just released in May.  I imagine as the investors upstream open up we'll see more programs like that hit the market.

My main lender is actually trying out a no qualify owner occupied loan.  Pretty crazy.

I've never done one of LH's long term loans, but if you want me shoot you the details of what I can do through them  let me know.