Hard money, how many points and what interest rate is good??

7 Replies

What kind of points and interest rate is considered a good deal for hard money? Finding lots of conflicting opinions on what's out there.

Depends on the lender, really. There's hard money for as little as 3.5% up to the low teens and beyond. Same with points; it varies a ton by lender. 2-4 points with high single to low double digits is fairly common.

Currently have a flip loan with a HML for 3 points and 9.9%. pretty good compared to what others are charging.

Figure the lender is gonna make $4-5000 on a deal less than $150k

However it spins that’ll be about the market.

10/3, 11/2, newbie maybe 11/3 or 12/3 for lower loan amount

I know guys at 10/1, but amounts over $300,000

Usually the sources I know charge 10% and 2 points. Usually for those who flipped at least 6 in the past 24 months.

Originally posted by @Sam Marcos :

What kind of points and interest rate is considered a good deal for hard money? Finding lots of conflicting opinions on what's out there.

Really depends on your experience.  If you're brand new, I'm seeing 12%, 3 pts.

If you're experienced, 8-10% interest, around 2 pts.

I have paid as little as 6.25% and as much as 18%. Shop around for your best deal. Experience as well as how much skin you put in will determine your quotes. 

What about loan to value?  70%?  80%?  90%?

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