Posted by BIGDADDY(MD) on June 27, 2002 at 11:26:19:
That’s reasonable, maybe a little bit high on the fee but a drowning man doesn’t turn down a flotation device because it’s not the preferred flotation device.
Do your math, if its not a long term investment (and possibly even if it is) the difference for the cost of the money over a short period of time (if your turning it over quickly) is minimal compared to what you could potentially make. I don’t know the parameters of your deal but as I said do the math, not to mention the fact the most hard money lenders can move relatively quickly with minimal paperwork. That in itself is a giant plus.
Hope this helps, if you have any other questions post it for me and I will be glad to answer it (if possible).
Posted on another board but seen that this board would probably be a better fit.
I found an investor who requires $2500 for a 30yr amort loan and a 3 year call. (no prepay penalty) The rate is 14% with loan amounts up to $60k
My credit is good (high 6’s low 7’s) but I can’t find a lender who will finance non owner-occupy without 30% down.
Even at 14% the house will still cash flow nicely.
Is this too high?? Or am I being too greedy looking for that extra 4-6% savings.
Thanks for your help
Bob
While I agree that ‘conventional financing’ may be available to you with your scores; it depends very much on the property. Are you buying it ‘as is’ with a great deal of rehab? If so, most conventional lenders will not touch it (deferred maintenance or repairs in excess of 3-5%) - hard money may be the only way for you to go. Good Luck
She is a local lender and will only work by referal (1st time using her)
I plan on holding the house(s) for some time. I can refi with wells fargo after 12 months of seasoning.
Thanks
Bob
ENJOY YOUR HOLIDAY
Go see another mortgage broker. Typically with non-owner occupied financing from my personal experience…you can go 90% LTV with only 10% down. In fact, most investors we deal with put 10% down. That also depends on other factors and you didn’t mention in detail your deals. Are you looking to flip or hold as a rental…short term or long term loan.