Any Hard money lenders out there

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Any Hard money lenders out there

Javier Rivera
Member since 2020 · 1 post · 0 votes

I found a property and got approved with a hard money lender, however the closing cost is 29k on a loan for 112k. Is that normal and are there better rates through other hard money lenders. This is my first deal. 

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    2y

    @Javier Rivera

    What is the breakdown of the $29k? Should be on closing disclosure

    That seems high but also some require prepaid interest….

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  • Mike Klarman
    Specialist · NJ · Member since 2022 · 1k+ posts · 653 votes
    2y

    So a lender will only talk about their fees, so they may tell you that closing costs for them are 6k all in and then the title company tells you to send a check in for more than that.  That's because lender fees are not the only fees in the deal.  You have title costs, sometimes insurance, pre paid interest, transfer tax, etc.

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  • Ryan Davies
    Investor · Salt Lake City, UT · Member since 2019 · 339 posts · 126 votes
    2y

    Heres the norm 

    • Rates: 9% to 13% (Most Deals are 11-12%)
    • Terms: up to 36 Months (Most Deals are 6-12 months)
    • Fees: 2-4 points(%) of loan amount paid at closing (Most Deals are 3 points(%))
    • Minimum Loan Amount: $50,000 (For loans less than $250,000 we charge $2,500 minimum)
    • Max Loan: 65%-70% of After Repair Value(ARV)
    • 100% Rehab Financing Available (Require 20% of purchase price down payment or cross-collateral)
    • Closing Timeframe: 48 Hours - 3 Weeks (Most Deals are 2 Weeks
    • We have private lending partners throughout the entire United States that cover the following states: AL, AZ, AR, CA, CO, CT, DE, FL, GA, HI, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, OH, OK, OR, PA, RI, TN, TX, UT, VA, WA, WV, WI, WY.
    • NO PRIMARY RESIDENCES, NON-OWNER OCCUPIED ONLY, BUSINESS AND COMMERCIAL USE ONLY.
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  • Ryan Stuckey
    Lender · Member since 2022 · 217 posts · 149 votes
    2y
    Quote from @Javier Rivera:

    I found a property and got approved with a hard money lender, however the closing cost is 29k on a loan for 112k. Is that normal and are there better rates through other hard money lenders. This is my first deal. 


     Are you sure that "closing cost" is not actually "cash to bring to closing"? This can include a down payment which may be 10-20% on a short-term purchase and rehab hard money loan.

    (except if you used Longhorn Investments. We have 0% down on purchase available, so our closings at this loan size level would be well under $10k).

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