Hard Money Rates for a 2-4 month flip
I have been using a Hard Money lender for deals where I needed the cash for 1 year or more and now I have a flip I want to done with in 2 months. He has always charged me 5 points and 12% interest and now as I i only need it for max 4 months he wants to charge me his 5 points and a flat rate of $5000 to lend $40000 for up to 6 months. That works out to a total outlay of $7000 for 6 months, which effectively brings the interest rate to 24%. I know they want their money to be out making money, but does this sound about right? Anyone have an opinion? Obviously there could be a deal with a better rate and a guaranteed 6 months etc.