Posted by Bob Beckman on August 25, 2003 at 11:33:18:
Cindy,
Of course we get a fee. Our interest rates may seem high, but they are so short term, (our loans average 4-8 months), that this never adds up to much, especially when you consider the risk and work we put into each loan.
If you want a local hard money lender, try a local real estate investor organization. There may be someone there with acceptable terms.
Almost all hard money lenders will have a property appraised (paid for by the borrower). That’s the surest way to find out the accurate LTV.
I need feed back on this one…found a hard money lender online. they say they can help with a large construction deal. Application fee is $10k plus 3 points/$30k for atotal of $40k. We htought this was ok…if we brought our funds ot the closing table and they bring theirs. THe guy said they want theirs up front…in their account and not held in escrow or brought to the closing table. They expect us to send htem $40k upfront…is what I am hearing. I only talked to the guy briefly yesterday.
Has anyone heard of this before …loan amount is $1,000,000.
Do not do it, there are plenty of lenders out there that will not charge such an up front fee. If you are in need of consulting and can put up money like that I know a name of firm that will gaurantee financing and help you sell the property for 1800.00 dollars. Go to greywolfconsulting.com and see what you think of that. If they can’t get you financed they will refund you the money
Re: hard money help me is it a scam or what??? - Posted by Bob Beckman
Posted by Bob Beckman on August 21, 2003 at 12:33:10:
Val,
As a hard money lender/real estate investment lender myself, I think that this up front payment is out of line. The most that you should ever be charged for an application fee is a couple hundred dollars. We only charge $25 up front as a processing fee. I mention this, not out of self promotion, but to illustrate how expensive this other program is.
Good luck,
Bob Beckman
Rehab Funding
As a residential and commercial mortgage broker I can tell you that many commercial lenders will collect a commitment fee. However, it must be held in escrow. Any company that doesn’t do that isn’t covering their own butt, and yours is definately not protected.
I have never heard of points being paid before the closing. That money should be brought to the table.
Bob, your telling me there’s a fee for hard money lenders? Also how do you find hard money lenders in your area? And if they do lend do you have to have property appraised and do you have to pay for that too?