I’m looking to do my first fixer upper and then keep for a rental. I’ve been calling around to Hard Money Lenders and I’m having trouble finding one that isn’t ridiculous for first time fixers. They have different rates and terms than if you’ve done this before. So I thought I’d ask everyone here...who are your favorite Hard Money Lenders?
Typically if its your 1-3 deal, you can expect rates to be interest only 9-12 months in the range of 12%, with 10-25% down. Some will allow you to roll closing costs in, some wont. Some will pre-fund the draws, others will reimburse the draws based on receipts and photos of the work done.
All beginning flippers should use a broker such as myself. The brokers that are active in this space and know how to put a deal together and what to look for are worth the money as they can guide you to the best and correct hard money. There are many questions that need to get answered to make sure the hard money lender is right for the borrower. The borrower can do it on their own, but assuring you get the best terms, may not be something they actually get on their own?
@Elizabeth Beard Beware bad information...
There are alot of hard money lenders out there not all are great.... We work with one regularly that we use ourselves as investors. Feel free to reach out to me and I can go over the program features and costs. typically for a new investor, rates are anywhere from 10-12 once you hit 4 deals they get better and turn times get better. These are based on deal and credit score, higher credit score better rate. they are 12m standard but options for 18-24m ( more expensive)