All Forum Posts by: Paul K.

@Rhett Claypool good luck with it, I am a lender in Wisconsin and Illinois so can’t help you in SC but feel free to post any term offers you get in this thread and I’d be happy to comment if it’s a fair deal or not

Hi There!  If the renovation will take 6 months of less, I’d suggest you go with a hard money lender. If you go with a hard money lender, expect to pay an interest rate between 9 and 12 percent along with 1 to 3 points. Check with your local real estate group or the bigger pockets hard money lending directory to find a good hard money lender. Try to find a lender in your area, as they will have more flexible terms as opposed to a national lender. 

@Yan Garcia

Almost all private and hard money lenders will require interest rates between 11-16% (11-14 is more typical) and points up front in the range of 2-5. This is different than a residential mortgage where you can use points to buy down the rate

If the loan is $100k you would pay the borrower 3pts ($3k) and then make monthly interest payments of $1k (assuming 12% interest only rate)

The longer the loan the fewer points up front.. say a loan over 2yrs may only have 2-3pts where a 6 month loan may have 3-5pts

@Jason Krivickas

Hi Jason,

I’m just on the WI side of the border m. I hope your RE investing is going well and it would be great to network with you.. I am a PML always looking for people to partner on deals with

@Joe Marshall

Hi Joe welcome to SE WIsconsin. I’m a PML out of Kenosha and it would be great to network with you and potentially partner with you on a future deal.

@Caleb Vance

You only pay monthly interest payments for the time you have the loan.. if it’s a 6 month loan you would pay $5k in total interest plus return his principle of $100k

@Jason Deangelis

Hi Jason, I am just across the border in WI and have a document I could email you that provides a comprehensive overview of the entire process. Just send me your email and I’ll short it over.

Paul

@Ryan Stogner

Depends on the length of the loan. If it’s a six month loan the PML may ask for 3 months of interest at closing. Longer loans the interest is just paid monthly

@Yan Garcia

Typically the rate is higher.. between 11-16%, additionally the PML gets points up front ~3

Lastly, you could do a profit split on the property if inclined and pay 10% of the profits but the first two are usually enough of a return

@Joshua Szentes

I live in the SE Wisconsin area (Kenosha) and do private money lending. I would be happy to connect with you and see if I can be of any help bow or I. The future.

Paul