Note Question - Posted by Mike (WA)
Posted by Mike (WA) on September 22, 2004 at 17:58:11:
I posted in cashflows, but am putting it here for wide exposure.
I had someone refered to me today looking for a small hard money loan. They want 8K @ 18% for 6 mos - interest only payments and 0 points. The property has a 1st at 73% LTV and as such this will be a 2nd secured by Deed in Lieu (which seemed srtange to me as well.) I’ve never needed to find hard money, but my research shows that on average, they only go to 65-70% LTV in first position with rates from 12-20+% and 4-10 points. I will be getting more info from these people later on property specifics, but was wanting know to right off what kind of rates one would epect to receive for this kind of loan. I’m thinking at least 4 points and title search fees included with perhaps more due to the high LTV and 2nd position. Other opinions are very welcome.