Hard Money Memphis deal
Hey all!
I have a property under contract with a closing date of May 27th! I'm contemplating HML, I don't want to use my cash.
The purchase price is 28K, I negotiated the reno so the only thing not done is some minor touch up paint, and HVAC. About $5500 max. The ARV is approx 65K. It's a 3/2 and I plan on section 8. On the low end at $750 I'm still positive cash flow (including, CapEx, Repairs and Vacancy). I believe I can get a solid $950 if not more.
So the HML....I have an offer, how does this sound...
The lender will lend $31,200; the $2800 would be my down payment on the deal; 2 pts would be on the loan amount.
"First, I'll send you a Client Broker Fee Agreement that will show 2% as discussed via DocuSign. Once that is completed, you'll receive an email from the lender to complete the application online. The application fee is $197. What is your email address?"
I understand HML can be scammy, but I also know some legit lenders are out there. I don't like the app fee upfront, and the 2% broker fee I'm not 100% sure about.
What are your thoughts? Is this standard, am I just a skeptical, nervous rookie?