Hard money lenders, Am I Adding This Up Correctly? - Posted by Kim Eaton

import · June 24, 2001, 8:46pm

Posted by Kim on June 24, 2001 at 21:01:32:

Thanks for the info, I can sleep now…

import · June 24, 2001, 8:46pm

Posted by Kim Eaton on June 24, 2001 at 20:46:59:

I am in the process of acquiring a foreclosure/rehab to flip. The information we have on hard money lenders says they will approve a 6 month loan on a 60% ltv property at 15-18% per month.

So if the loan is for 50K, and the interest rate is 15%, does this mean that they want $7,500.00 PER MONTH for the term of the loan? So if it takes me 4 months to resell the property, I pay them 30K and effectively pay them the entire amount of the profit?

I hope that I am missing something, otherwise, why would anyone use these lenders, unless you knew up front that you could rehab and sell in days, not months.

Please advise. Thanks, as always, for your help.

import · June 25, 2001, 9:14am

Re: Hard money lenders, Am I Adding…? - Posted by Valerie

Posted by Valerie on June 25, 2001 at 09:14:22:

Kim -

I will e-mail you an amortization schedule for your use.

Valerie

import · June 24, 2001, 8:57pm

No - Posted by Nate(DC)

Posted by Nate(DC) on June 24, 2001 at 20:57:40:

Kim,

15% is the ANNUAL interest rate, not monthly.

So your monthly payment would be 1/12 of $7,500.

NT