Hard Money Question - Posted by Wilson

Posted by edcopp on July 26, 2003 at 11:01:15:

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Hard Money Question - Posted by Wilson

Posted by Wilson on July 26, 2003 at 10:51:52:

To All the Experienced Investors Out There,

I am trying to understand Hard Money. When you work with a hard money lender the interest rate that they charge, is this an annual rate or a monthly rate. For instance if I borrow 50K at 12%. Is the cost of the
money 6000.00 per month or 6000.00 per year divided into 12 monthly payments.
Can someone please clear this up for me.

Thanks

Re: $500 per month (nt) - Posted by jasonrei

Posted by jasonrei on July 26, 2003 at 16:34:39:

nt

Re: Hard Money Question - Posted by Linda Simms

Posted by Linda Simms on July 26, 2003 at 11:28:52:

It is usually an annual rate, simple interest. Percentage times the amount divided by 12. However, be sure and ask that question of the lender and get them to give you the correct figures. If you can borrow $50,000.00 hardmoney at 12% interest with no points or penalties or pay off fees for one year or longer, you probably have a great deal. I would like some of that, under those terms myself.