Hard Money Loan Questions...

[Carlos Quiros]

Hello-

New to hard money but not to rentals, I own 5 doors that I have funded myself but want to keep some reserves so looking into hard money for my next deal and will refinance into a conventional loan to keep the property.

Are these typical hard money terms or is this too much?

General terms:

80-90% LTV/ 100% LTC with a cap at 70% ARV
9mo note at 12.99% I/O
3pts Origination
$1k UW
$1k Legal
Additional costs - title, appraisal, property insurance (~$2k)
10% of renovation estimate as contingency due at closing.
Renovation funds issued on a reimbursement basis for work completed.

Looking for constructive feedback.

Thank you to all that contribute.

[Robin Simon]

Quote from @Carlos Quiros:

Hello-

New to hard money but not to rentals, I own 5 doors that I have funded myself but want to keep some reserves so looking into hard money for my next deal and will refinance into a conventional loan to keep the property.

Are these typical hard money terms or is this too much?

General terms:

80-90% LTV/ 100% LTC with a cap at 70% ARV
9mo note at 12.99% I/O
3pts Origination
$1k UW
$1k Legal
Additional costs - title, appraisal, property insurance (~$2k)
10% of renovation estimate as contingency due at closing.
Renovation funds issued on a reimbursement basis for work completed.

Looking for constructive feedback.

Thank you to all that contribute.

 ITs certainly in the ballpark but I think you can do better most likely - especially with your experience of owning five rentals - certainly some options here on BP to shop around - but the rates and points seem a tad high - you could probably secure something with both a lower rate and origination (and potentially no appraisal cost as some Hard Money Lenders don't require them)