Financing Options - Posted by Walt

Real Estate Investing
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Posted by Walt on December 03, 2004 at 14:04:07:

Thanks. That seems to be more for “flipping” than for the long term hold for cash flow. Correct me if I’m wrong.

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Financing Options - Posted by Walt

Posted by Walt on December 03, 2004 at 11:51:51:

Ok, just gathering info… reading ALOT of posts and have some questions:

What is a hard money lender?

What are the other typical financing options?

Thanks.

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Re: Financing Options - Posted by Zack W

Posted by Zack W on December 03, 2004 at 12:58:06:

Walt,

A hard money lender is an individual or company loaning “private” money. Years ago they would loan on the actual deal and not be too concerned about the borrowers credit because they made the loan at a low enough loan to value that if the borrower defaulted they would take the house back and still make a substantial profit. Nowadyays most of your hard money lenders will want you to have good credit and assets to support the deal. They will also usually not loan more than 70% of the appraised value. Their rates will vary between 10-18% interest and usually 2-7 points per deal. The term is usually 12 months.

Zack W