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Updated over 6 years ago on . Most recent reply

User Stats

83
Posts
12
Votes
Steve Kirsch
  • Hilo, HI
12
Votes |
83
Posts

What makes a deal attractive to Hard Money Private Money Lenders

Steve Kirsch
  • Hilo, HI
Posted

Hello All,

Can I have some pointers on what thresholds are typically required for ROI that HML/PML strive to achieve when reviewing and approving the lending for a deal? For me, I'm looking at cash flow and long term appreciation as my priority goals when running numbers. However, lenders don't bother with cash flow as they are looking at short term return of their investment in the lending of the funds. Each lender's ROI requirement is different which I fully understand and each use a number of formulas to determine approval. However, I would love to know if there are an industry standard threshold to be reached? This would allow me to vet properties more stringently before I submit data reports to the lenders?

Thank you

Steve K.

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