Investor · Las Vegas, NV · Member since 2020 · 8 posts · 2 votes
Hello everyone, my wife and I have been analyzing multiple properties and we are approaching the point where we will need to find the cash to get our BRRRR method started. Question #1 What are the financing fees associated with purchasing a pre-foreclosure using hard money? approximate monthly rate for a hard money loan on 150K all in.. I'm trying to calculate my holding cost and expenses to add these amounts into the budget so we are actually zero out of pocket. If someone would help we would greatly appreciate it.
Every lender is going to be different with their costs but these are ours. 12% interest only payments plus 3 origination points which we can roll into the loan depending upon the total loan amount. We cap our loans at 65% of the After Repair Value. If you can purchase and rehab the property within that 65% range, you could do the deal without bringing cash to the table. Beyond that, we have a $295 doc prep fee.
Some lenders may also have appraisal fees and several others. As I said, we are all different.
Thank you guys for the information! My wife and I literally just had a morning meeting prior to me getting onto bigger pockets to see this information. You guys are great!