Posted by Ed Garcia on December 01, 2000 at 10:39:36:
Allen,
Let me not mince words, he’s a LOAN SHARK.
There are Hard Money Lenders that make loans predicated on equity position. These lenders will charge excessive fees such as 14% and 10 points, but will give you enough time to execute your transaction to completion. Many of them will lend 3 to 5 years allowing you enough time to clean up your credit, or substantiate your equity position and over come the seasoning issue to refinance the property at a later date.
A hard money lender, lends with a return in mind, but knows if something should go wrong, that they have enough equity in the deal to recapture their money.
Your friend who allows 30 to 60 days knows going in that the investor that he lent the money to, will have their back to the wall with his time frame. His intention is to milk the deal by rolling his loan over for another 30 to 60 days or pick up the property. He’s making 100 to 500% and is with out a doubt, a loan shark.
Ed Garcia