They vary depending on things such as the location, the lender, and even the deal. Typically I see a lot that are charging interest rates in the low teens with maybe a point or two.
The HML I am working with is charging 12% and 3 points.
Usually the more deals you do with them the better the rates get and sometimes if you are going to hold the property as a rental they will give you better rates if you promise to refinance the property using them. But either way HML will always be expensive. Just trying to get a few projects under my belt so I can have a presentation and track record to put together for private lenders.
Great, now what is a typical payback period? Are there typical penalties for extending beyond?
Thanks for your responses. I have a friend who wants to be my investor. Neither of us have used hard money before, so I looking to see what is typical.
Most hard money are around 12% and 3-4 points. I've seen some as high as 16% and 6 points.
Most will require 25-35% down too, and some will fund a portion of the rehab, some won't.
I talked to a local hard money lender and they do 80% of of the cost if the total is under 65% of the LTV.
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