Hard Money Help For Article I Am Writing!
I am writing an article for the May issue of REIP magazine. I need to do some research regarding HM rates and fees.
IN most of the states that I have invested in and or lent in the rate is 2-5% per month, and the average term is 60 days with an extension possible for an extra premium.
What is the norm in your area? I would like to know what the standard is in terms of:
Points or interest per month
Length of Hard Money loan
ANy help you can give me would be a great help for the accuracy of my article.
THanks,
Randall
I have done several hard money loans. I usually pay 4-5 pts and 13 to 18 percent interest depending on what my credit score is at the time. The length of the loan is usually for a 12 month period. Sometimes 6 months. I know of some lenders that will rebate the pts if paid early. Hope this helps.
Thanks! I appreciate the input.
Randall
[addsig]
Let me know when your article comes out, I would love to read it. Or send me a copy if you would.
Thanks
2-6 points up front
12.99-18% (18% being no payments and 6 month balloon)
6-12 months balloon
Florida Hard Money:
9.9-16% depending on lender
LTV based on ARV
65-80% depending on borrower and lender relationship and history together
0-6pts on the front of the loan
interest only payments monthly.
can escrow payemnt upfront.
credit usually not a factor but depends on lender
No land or tax deeds typically.
Lenders are typcially adverse to frame homes in south florida.
2yr balloons with option for extensions
Thanks!
It appears that HM is much more liberal out there in FLA.
[addsig]
As an asset based lender in Washington, our rates are usually 4-6 points and between 12 and 18 percent. It depends on the timing. If an investor needs to close on a loan in 3 days, on an offer that was accepted 3 weeks ago, they are going to have to pay the price. We do a lot of pre-construction loans to our investors and provide the draws for the construction using Hard Money. These loans are for business purposes.
One other item to be aware of is usery laws. Each state is different. If someone wants a hard money loan for personal reasons or against their primary residence, I believe the max rate is no more than 4 points in combined fees and costs, and no more than 8% above prime. This comes out to about 3 points and 12%.