Hard Money Lenders
I've just started in my new venture, real estate investing. I'm researching lending sources and specifically hard money lenders. Seems the norm is 65% LTV after repairs or I guess of FMV. Is this typical or can I do better if I continue my search?
It depends on your credit and the hard money lender. I have seen 95% LTV witha an A credit score, but typically 60-70% is the normal. Just watch out for all those hidden fees and points. I have been quoted 26% for 6 months after all the fees and points by one lender. Its worth it to do the hard money loans if it will help for a faster closing, not normal properties, or if you have bad credit. Other than that I prefer traditional.
Good Luck,
Kyle
As a mortgage broker for 8 + years - and dealing with tons of private lenders (hard equity) - I think you *shouldn't* look for a hard money lender who will lend over 65%LTV, coz he/she will charge you a hand and an arm for the additional LTV.
You are better off trying to keep your rates below 14%. Also try to get a lender who will accept "interest only" payments (most do) and try to talk them out of charging you any points upfront - because it means less money in your pocket.