Lender offer for pulling cash on my property... am I missing something here???
Ok, So I have been speaking with Private Money Exchange about pulling money out of one of my properties.
Here are the numbers
Loan amount $23,000
Closing Costs $6000 - Taken out at closing
Cash in my hand at Closing $17,000 and no money out of pocket
24 Month Interest only $3450 - 15% intereste rate
Balloon of $23,000
So it will cost me $10,000 to get $17,000 cash.... am I missing something here or is this the most expensive money ever??
UPDATE:
Ohhh.. and did I mention its a loan AGAINST a free-and-clear property??? And the loan offer is 50% LTV.
I'm in the wrong end of the business I guess. If I am looking at this the wrong way can someone please explain it then???!!!
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
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#3 Real Estate Deal Analysis & Advice Contributor
- Rental Property Investor
- Mercer Island, WA
24 months interest at 15% would be $6900, not $3450.
Effectively 26 points up front, though I'm sure that's a combination of points and fees.
Unreal. I guess "there's a sucker born every minute" and that's what they're counting on.