The going rate depends on several factors normally, including the credit of the borrower and the Debt to Income of the borrower, including the new debt.
Also, the fact that you are in a second position makes a difference. Most hard money lenders will charge 10-15% on a first at Loan to Values not much higher than where you are now, AND some will also charge points.
I think that 10% is an extremely good deal for the borrower, and as for points, that is fine if they are in a position to pay them, since it is not a large amount of money. For example, 5 points on that amount of money is $500. So, maybe 10% plus 5 points with a balloon due in lets say 5 years is how I might do something like this deal.
i agree with cj, 10% is pretty cheap seeing as your in 2nd position.
you have to think of your alternatives for that money. you could buy someone elses 2nd that has been discounted signficantly. spending $10k could get you a loan worth $20k and the payments to match.
usury laws are important though when dealing with your points, fees and rates. if your maxed out on your limit for the rate, a good attny for the borrower could point to the points and fees and argue that it puts you over that rate limit.
The going rate depends on several factors normally, including the credit of the borrower and the Debt to Income of the borrower, including the new debt.
Also, the fact that you are in a second position makes a difference. Most hard money lenders will charge 10-15% on a first at Loan to Values not much higher than where you are now, AND some will also charge points.
I think that 10% is an extremely good deal for the borrower, and as for points, that is fine if they are in a position to pay them, since it is not a large amount of money. For example, 5 points on that amount of money is $500. So, maybe 10% plus 5 points with a balloon due in lets say 5 years is how I might do something like this deal.
i agree with cj, 10% is pretty cheap seeing as your in 2nd position.
you have to think of your alternatives for that money. you could buy someone elses 2nd that has been discounted signficantly. spending $10k could get you a loan worth $20k and the payments to match.
usury laws are important though when dealing with your points, fees and rates. if your maxed out on your limit for the rate, a good attny for the borrower could point to the points and fees and argue that it puts you over that rate limit.