Posted by Brandon (FL) on January 30, 2002 at 08:02:07:
How much did you have to pay Total out of pocket money to get the deal done? Closing cost, broker fee, etc…
need hard money example - Posted by Richard
Posted by Richard on January 27, 2002 at 06:13:21:
Can somebody provide an example of how a hard money loan works as far as payments, term, or any details. Say I borrow $100K; how much is the payment through these lenders?
Is it interest only with a balloon payment at the end? How many points are charged normally? What criteria do they use to determine the rate & points they charge you other than the LTV? Would a conventional loan be better suited if I was going to lease option it instead of turning it over quickly? Any help would be appreciated.
Re: need hard money example - Posted by BJ (TX)
Posted by BJ (TX) on January 28, 2002 at 08:15:38:
Richard,
I just completed a hard money deal,and this is how it worked. The house was bought 50cents on the dollar.
The hard money lender would lend 70% of repaired value
on home worth 70 to $100,000 at 12%interest only payments paying 5 pts for 6mths.minus cost of repairs,
which they put into a contingency fund when work was completed we could make a draw. This type of money is very costly, and you would not want to keep it for very long ,but it could help you get the deal if you buy it right.If for some reason you go beyond 6mths the interest moves to 18%.
Good Luck
Re: need hard money example - Posted by Keith Hutson
Posted by Keith Hutson on February 01, 2002 at 18:14:52:
Do hard money lenders roll points back into the loan or is that due at closing. Seems how in some of these cases without the seller holding some paper you must come up with sizeable cash at closing.
Keith Hutson
Re: need hard money example - Posted by Todd H.
Posted by Todd H. on January 28, 2002 at 15:07:59:
BJ, If you got 70% of ARV, you did well and actually 12% is a good hard money rate. Did you include the points into the financing or did you pay that upfront or was it due at the end of the loan? Did they base their lending criteria on the property or on your credit?
If you don’t mind me asking, who did you use as the hard money lender? I am in NC and looking for exactly this type of lender. Will they do inot NC to do deals?
Thanks,
Todd
Re: need hard money example - Posted by BJ (TX)
Posted by BJ (TX) on February 01, 2002 at 20:29:17:
With our hard money loan we were able to add the points into the loan. Total outlay at closing was a 1000.00 ,only because the appraisal was quoted 2000.00
shy of actual appraisal. If we would of had the correct appraisal it would have been a no money deal!
Re: need hard money example - Posted by BJ (TX)
Posted by BJ (TX) on January 28, 2002 at 16:19:07:
Todd,
Yes, we did very well.
The closing cost were put into the loan,but we had 1%
lender fee at the tail of the loan. There was also an
appraisal/inspection fee $500 . The company is in houston and believe they service the metro area.
Coast Reality Capital. There lending was based on credit and house appraisal.
lots of luck