Hi Everyone,

I found a hard money lender through the Bigger Pockets marketplace. Has anyone worked with P&T Financial they're based in Pinckney, MI 48169? Below is an example of their financing cost: Also  Extension fee after 6 month period – 1.50% per month (this fee is in addition to the interest . Are these extension fees normal?

  •  Current property value $ 40,000  Construction / Rehab $ 20,000
  • ARV $100,000
  •  Investor borrows 60% of the ARV $60,000
  •  At closing (5%) $3,000 (title company closing costs are in addition to this amount. Title  closing costs vary) + loan doc fee $150 + appraisal $450 (est.) = $3,600
  •  Loan is comprised of (4) draws - $150 inspection fee each = $600 (wiring funds has  a  small fee, usually around $20 each wire).
  •  (5) Months of interest $3,750 (1.25% X $60,000 X 5 months)
  •  Home sells for $100,000
  •  Total loan cost -$ 7,950
  •  Original lender investment -$60,000
  •  Borrower profits $32,050 (This amount does not include title company closing costs, insurance, taxes, HOA fees, or real estate agent fees).