Investor · Anaheim, CA · Member since 2015 · 66 posts · 8 votes
I am searching for a private lender to fund a gap loan for a fix and flip. The property is in Baltimore, MD and requires about 20K in repairs prior to bringing it to market. Ideally, I am interested in terms in the 8% to 10% range with no administration fees or points. The term of the loan would be a year but would close likely within 3 months.
You’re probably looking at double that rate for a second on a flip since it’s such a risky loan and such a small amount, if anyone would do it.. $20,000 @ 10% for 3momths is less than $700 return.
Second position loans are incredibly risky. You're asking for a rate that's lower than most first position hard money loans. That's a "grandma, I need some cash" situation.
How about credit cards, 401k loan, refi a property or car, or sell something?