what is a good return for a lender

[Account Closed]

Hey BP, I'm thinking about funding my first deal with a lender or hard money lender what do you thinks is a decent return for a lender without offending them? Thanks in advance

[Mark Safrin]

Originally posted by @Account Closed:

O ok so there no negotiation with a hard money lender like they do on shark tank 😆?

You can always try and negotiate. Your HML will usually have a going rate but may also have some discretion.

Of course negotiation works best if you have something to offer. 

To exaggerate slightly... That rock solid $8 Million, recently rehabbed, fully leased, Manhattan SFR that you only need 50% of LTV, when you have done 30 flips before and your credit score is 850 and you can give the HML what he considers ample time to do due process, underwrite and close, will give you a heck of a lot more chance of said HML exercising his (or his CEO's) discretion...

... than when you are barely scraping the minimum $75K loan size, have no experience, the property is in Nowhereville (Population 3.), you have a credit score of 420 with a recent foreclosure, you demand the money in small unmarked bills in 48 hours, will complain over every fee, point and percent including spending hours on the phone arguing that the lender has to pay the appraiser and why should you provide any docs whatsoever, and by the way you can't speak now because you are busy running narcotics across the border at the moment on the run from the military, and the lender can just tell that you are the horror customer that will take up weeks of his time and grey the last remaining follicle on his head all for a massive $1.95 of personal commission.

;)