Regarding Hard money Loan

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Regarding Hard money Loan

Joshua Kavadi
Atlanta, GA · Member since 2025 · 132 posts · 30 votes

Dear ALL,

I have a deal which I am working on .  The purchase price  of the property is 180 K, closing cost is 42 K, with monthly interest payments of $1600. Any recommendations for any lender who can offer lesser closing cost and interest rates .

I appreciate your cooperation

thanks 

Joshua

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Ryan Stuckey
Lender · Member since 2022 · 217 posts · 148 votes
1y

Check out Longhorn Investments at longhorninvestments.com. Chip Cagle is your local expert and can be reached via the website. Longhorn can offer 100% of purchase price and rehab (up to 75% ARV on total loan size) and there is not an experience requirement as long as it's not heavy rehab. Quick closing and investor-friendly reputation. You should definitely consider this option as your down payment may get to or near $0. Of course, normal closing costs will be on top of that.

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  • Kyle DeutschmannPro Member
    Investor · Washington, DC · Member since 2017 · 428 posts · 205 votes
    1y

    $42k closing costs? That's wild. Who's the lender? 

    [email protected]
    0Reply
  • Tarik Turner
    Lender · Hackensack, NJ · Member since 2016 · 1k+ posts · 372 votes
    1y

    I am assuming that your closing costs listed (42k) also includes your down payment on the purchase.

    ect 20% down payment = $36,000 plus 6k in total closing costs If this is the case It seems more reasonable however it really depends on the details. Are you seeking a 30 yr rental mortgage? Fix and flip mortgage? Are you a first time investor? All of those items will determine how much lower your costs can actually be on this one

    0Reply
  • Roger Mace
    Lender · Knoxville, TN · Member since 2024 · 112 posts · 23 votes
    1y
    I work with a number of lenders some hard money and some private lenders.  I can always do research to find you a good deal.  The information provided isn't enough to start the process. How long is the term on the loan, what is the interest rate. Is it a fix and flip, fix and keep or rental property.  I would love the opportunity to discuss this.
    0Reply
  • Givo Aghasi
    Lender · Los Angeles, CA · Member since 2022 · 238 posts · 73 votes
    1y

    @Joshua Kavadi I would love to connect and see if this is something we can help with. We offer fix & flip and rental loans if you plan on keeping this as a rental. 

    0Reply
  • Ryan Stuckey
    Lender · Member since 2022 · 217 posts · 148 votes
    1y

    Check out Longhorn Investments at longhorninvestments.com. Chip Cagle is your local expert and can be reached via the website. Longhorn can offer 100% of purchase price and rehab (up to 75% ARV on total loan size) and there is not an experience requirement as long as it's not heavy rehab. Quick closing and investor-friendly reputation. You should definitely consider this option as your down payment may get to or near $0. Of course, normal closing costs will be on top of that.

    2Reply
  • Mills Thumser
    Lender · Member since 2024 · 33 posts · 4 votes
    1y

    Hey Joshua, I'd like to connect to get further details on the project and your experience. Feel free to send me a connect or reach out to me directly with my contact info in my bio. 

    Hope to speak with you further!

    0Reply
  • Erik EstradaBusiness Member
    Lender · Member since 2022 · 6k+ posts · 1k+ votes
    1y
    Quote from @Joshua Kavadi:

    Dear ALL,

    I have a deal which I am working on .  The purchase price  of the property is 180 K, closing cost is 42 K, with monthly interest payments of $1600. Any recommendations for any lender who can offer lesser closing cost and interest rates .

    I appreciate your cooperation

    thanks 

    Joshua

     I don't think the closing costs are $42k on a $180k Purchase Price.. 

    Do you have a term sheet to share? Do you have any experience flipping in the last 36 months? 

    [email protected]818-269-7983
    LuxePrivate Investments LLC 572 Reviews
    WebsiteView Page
    0Reply
  • Mike Klarman
    Specialist · NJ · Member since 2022 · 1k+ posts · 649 votes
    1y

    Well Josh, if your credit is good and you have some experience you should be able to get 85% or so leverage.

    Now, there's a ton of HUD fees that are outside of the lending: property taxes, transfer taxes, title charges, sometimes the wholesale fee is not included in the leverage cause it throws the equation off.

    What is the ARV?

    That's the other obstacle that can affect pricing. If you are buying at 180k. How much work does it need? What is ARV?

    Multiply the ARV by 70% then subtract your rehab budget. What's left is what the lender can offer you in leverage on the purchase.

    0Reply
  • Joshua Kavadi
    OP
    Atlanta, GA · Member since 2025 · 132 posts · 30 votes
    1y
    Quote from @Ryan Stuckey:

    Check out Longhorn Investments at longhorninvestments.com. Chip Cagle is your local expert and can be reached via the website. Longhorn can offer 100% of purchase price and rehab (up to 75% ARV on total loan size) and there is not an experience requirement as long as it's not heavy rehab. Quick closing and investor-friendly reputation. You should definitely consider this option as your down payment may get to or near $0. Of course, normal closing costs will be on top of that.


     Thanks Ryan, I was able to find a them via a  Brokerage company . yes they gave me a closing cost about 13 K . thanks for your suggestion . They said :

    Here is our mortgagee clause:

    Trident Realty Investments, LLC

    PO Box 10160

    Huntsville TX 77340

    Loan number: _________

    They are asking for the 6 month insurance which I need to pay couple of days before the closing day . is it True ? 

    0Reply
  • Joshua Kavadi
    OP
    Atlanta, GA · Member since 2025 · 132 posts · 30 votes
    1y
    Quote from @Mike Klarman:

    Well Josh, if your credit is good and you have some experience you should be able to get 85% or so leverage.

    Now, there's a ton of HUD fees that are outside of the lending: property taxes, transfer taxes, title charges, sometimes the wholesale fee is not included in the leverage cause it throws the equation off.

    What is the ARV?

    That's the other obstacle that can affect pricing. If you are buying at 180k. How much work does it need? What is ARV?

    Multiply the ARV by 70% then subtract your rehab budget. What's left is what the lender can offer you in leverage on the purchase.

    Mike, the work is about 40 to 45 K. ARV is 300 K so 300 subtract 225 K plus Lender fees, and closing cost .

    0Reply
  • Ryan Stuckey
    Lender · Member since 2022 · 217 posts · 148 votes
    1y
    Quote from @Joshua Kavadi:
    Quote from @Ryan Stuckey:

    Check out Longhorn Investments at longhorninvestments.com. Chip Cagle is your local expert and can be reached via the website. Longhorn can offer 100% of purchase price and rehab (up to 75% ARV on total loan size) and there is not an experience requirement as long as it's not heavy rehab. Quick closing and investor-friendly reputation. You should definitely consider this option as your down payment may get to or near $0. Of course, normal closing costs will be on top of that.


     Thanks Ryan, I was able to find a them via a  Brokerage company . yes they gave me a closing cost about 13 K . thanks for your suggestion . They said :

    Here is our mortgagee clause:

    Trident Realty Investments, LLC

    PO Box 10160

    Huntsville TX 77340

    Loan number: _________

    They are asking for the 6 month insurance which I need to pay couple of days before the closing day . is it True ? 

    Sounds like you might be getting close to $0 down if your costs are within 70-75% of ARV. Anyway, I'm not sure how much of the "closing costs" mentioned include any down payment. I'm pretty sure your costs would include a broker fee if that is how you were introduced. Please note the website/program is generally open to the public without a need for a broker to find it for anyone.

    Indeed, most HMLs will want the full 6-12 month term paid up by closing so that full loan term has insurance coverage in place and there is no insurance issue 2-3 months into the activity due to lack of a monthly payment by the borrower. 

    0Reply
  • Joshua Kavadi
    OP
    Atlanta, GA · Member since 2025 · 132 posts · 30 votes
    1y

    thanks Ryan

    0Reply
  • Steven Swanson
    Lender · Member since 2024 · 40 posts · 4 votes
    1y
    Quote from @Joshua Kavadi:

    Dear ALL,

    I have a deal which I am working on .  The purchase price  of the property is 180 K, closing cost is 42 K, with monthly interest payments of $1600. Any recommendations for any lender who can offer lesser closing cost and interest rates .

    I appreciate your cooperation

    thanks 

    Joshua


     Happy to connect and take a look at your options 

    0Reply
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