Updated over 7 years ago on . Most recent reply
Closing escrow with hard money
Hi, I have a house under escrow in Tennessee, planning to pull a hard money loan to close the deal and fund remodeling. I can pull together my own finances to close, but won’t have enough to Brrrr, and will have to work too hard to fund myself. I want to get this thing hard money financed, but am hearing things that make it sound more complicated than I thought. A hard money lender said I need to have an LLC for the purchase, 15k bank statement for last 2 months and $3,500 minimal fee for loan along with 12% interest on 13m loan. This probably sounds like no big deal.. Does this sound normal? This will be my first hard money loan, first LLC, and first Brrrr. I’ve done 2 other deals and purchased a few properties and am just learning the ropes of financing and wise RE investing.
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That sounds fairly typical. My HML only needs one month statements, sometimes just proof that llc Is being formed Is good, and they can firm one for you for a fee.
Is the 3500 fee an origination fee, processing fee or what. Usually you have a processing fee covers all the doc prep etc. Then origination fee which is a percentage point of the loan. How much are you putting down and how much rehab are they funding?
Hml should be good for cash offer, if you are using realtor ask them, otherwise you might have to check with title or the seller to make sure, 90% of time it is good as cash.