I met a person on BP that is a lender. Id rather not advertise. I'm looking for any feedback.
Would you accept this loan?
They are willing to loan $150K for SFH purchase and rehab. Term is 12 months @ 4%. The loan is a non-collateral loan. It will cost me $1,250 upfront, with $750 of that refundable if I don't qualify. Monthly payments ($12+K monthly payments) alone is something I can't afford to pay. However, I know that if I find the right deal (been looking), I can make a decent profit.
3 months of $13K payments takes me down to $111,000 to cover the purchase and rehab costs. If I go longer than 5 months, I feel I will be in the red and underwater on this deal.
Should I get 2 places for $55K each? (once again to cover the purchase and rehab)
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@John Hamilton Personally, I think those are horrible terms. $12,000 per month for payments?? Upfront fees? It's also very strange that it would be a non-collateral loan.
I would simply look to small, local banks or even HML's for better lending options for a purchase + rehab. Definitely keep shopping.
Originally posted by @John Hamilton :
Term is 12 months @ 4%. The loan is a non-collateral loan. It will cost me $1,250 upfront, with $750 of that refundable if I don't qualify.
Wow... with that low a rate for private money, non collateral and that high an upfront cost, claiming that it is refundable if you don't qualify--- I would be very suspicious. Too many RED FLAGS.
Have you checked this source out thoroughly? Has anyone else actually close with this source? And or gotten their upfront fees back?
There are lenders that require some up front as 3rd party cost ---but $1250 is TOO MUCH and TOO RISKY.
Upfront fees and the terms are not good
Thanks to all. I have since declined my application and interest in this loan.
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