Posted by Bill Moran on December 06, 2000 at 22:41:15:
Craig Rodesky at Major Financial in Tampa. He does hard money loans at 15% and 5 pts. he keeps repair money in escrow and releases it in draws. His number is 1-800-335-0256. or Reea.com… Tell him Bill Moran sent you.
5 points + 15% + $1500 escrow - Posted by Arthur Montano
Posted by Arthur Montano on December 04, 2000 at 23:08:33:
The above terms were given to me by another private money lender in my area. Since I have wery limited knowledge in is field, are these terms the norm?
Mr Garcia, when is your next Private Money Class? Do you lend on private small deals or know of someone here in Central Florida that will lend on rehabs at 65% LTV?
Thanks, Art
Re: 5 points + 15% + $1500 escrow - Posted by Ed Garcia
Posted by Ed Garcia on December 05, 2000 at 10:09:36:
Arthur,
Remember, Hard money is not designed for long term financing, that’s why it’s so expensive. With that in mind, we know that financing is not carved in stone. We can use it to accomplish our goals. For example: If you take out your hard money loan at 15% and 5 points. Your main objective is to buy the house for resale, or to hold. If you resale, then you’re going to pay on it for a short period of time. If you hold, you’re going to refinance it in a year assuming you have good credit and two to three if you don’t.
By the way, if you do have a credit problem, make sure you document your monthly payments to your hard money lender. Also take your hard money loan for at least 3 years giving you more than enough time to clean up your credit.
In doing so, You have just purchased a house at 65% LTV hard money, financed it 100% and refinanced it in a year at a good rate, improving your cash flow. That’s a lot more attractive than taking on a 50/50 partner.
As far as out next workshop, we have nothing planed at this time.
Ed Garcia