I am a HML in Charlotte. In this area, most of us are around 15% and 4 points. 65% LTV is standard; there are some who will do 70%.
I agree HM is not your cheapest or best source of money. If you have availability on a HELOC, or uncle Bob wants to earn 10% those are better deals.
If you do lots of deals, and you are finding real deals, eventually you may find yourself in a position where your other sources are empty and your HML is ready to go.
The two advantages to HM are: No money out of your pocket, and most can fund a loan in just a couple days (we have done it in less than 24 hours for one of our repeat customers).
I applied for a hard money loan a few weeks ago. I found out the interest rate was 13.5% and they would only loan 65%LTV.
If would have been much easier and less money out of pocket for me to get a HELOC on one of my invezstment props or my own home.
I have purchased my second home free and clear of any loans, I will refi it to pull out cash I paid for it and buy another home.
My bottom line is I use my house as a piggy bank but, if I had no choice I would use hard money.
I am a HML in Charlotte. In this area, most of us are around 15% and 4 points. 65% LTV is standard; there are some who will do 70%.
I agree HM is not your cheapest or best source of money. If you have availability on a HELOC, or uncle Bob wants to earn 10% those are better deals.
If you do lots of deals, and you are finding real deals, eventually you may find yourself in a position where your other sources are empty and your HML is ready to go.
The two advantages to HM are: No money out of your pocket, and most can fund a loan in just a couple days (we have done it in less than 24 hours for one of our repeat customers).