Opinion on these Hard Money Terms
Hey there everyone, looking for some opinions on these terms for a hard money loan. First time using hard money and I'm looking at this lender as one of the options for this potential BRRR
Brief numbers on my deal
150k purchase price for hard money
40k owner carryback
100k rehab
ARV 370k
Minimum purchase price: $63,000 (if 0 experiences in last 3 years)
Minimum purchase price: $59,000 (if 3+ experiences in last 3 years)
Minimum ARV: $75,000
Minimum loan amount: $50,000
Appraisal Fee: $550-$725
Closing, Legal Fee: $995 - $1,500
Interest Rate: 7.99 - 10.99%*
Origination Fee: 2.00 - 4.00% **
Loan Amount: 80-90% of purchase price + 100% rehab costs
Term: 12 months, interest-only
* Rates based on investor experience, 24 flips last 3 years = 7.99%, 0 flips = 11.99%
** Based on loan size and risk profile