Pros....Survey.... - Posted by acw

Posted by Rich-CA on September 03, 2007 at 19:37:00:

This would essentially be the same risk level as credit card companies, so I would have thought the interest rate would be similar.

Pros…Survey… - Posted by acw

Posted by acw on September 01, 2007 at 06:07:41:

I use to be able to borrower hard money for deals that i’d find and get 100% financing.

Now, since some of the HM lenders in my area have been burned with a few foreclosures…i’m finding there not as liberal…

Im in S.Fla.

Is this the case in Most larger Cities?

thanks in advanvce

~Tony

Re: Pros…Survey… - Posted by Dan O’Connor

Posted by Dan O’Connor on September 01, 2007 at 09:28:37:

Tony,

I’m not sure that I fully understand your statement…you had HMLs who would loan 100% LTV?

If so, I gotta tell ya that I’ve never known true HMLs (excluding friends or simply an individual with excess cash) who’d loan more than 70% LTV. Period.

Dan
www.yourfirstdeal.com

Oh Yeah…! - Posted by acw

Posted by acw on September 03, 2007 at 06:41:07:

Thanks Dan,

Oh Yeah…we had numerous HML who would lend 100 LTV for investors who bought and sold property. They would charge 12% and points. Of course they new the property was a “steal” and that they would be getting paid off shortly because properties were being rehabed and sold within 6 mths.

Now…i don’t know what the story is out there…

Anyone else?

~T

Re: Oh Yeah…! - Posted by Dan O’Connor

Posted by Dan O’Connor on September 03, 2007 at 10:48:05:

Interesting…your HMLs considered a property a ‘steal’ at 100% LTV because it would sell in 6 months? That’s likely why they’re not offering those same terms now. :wink:

Curious, where’s the security in offering an investor 100% LTV? Someone’s word? Blind faith?

If that were the case, I’d be willing to speculate that at least a couple of investors walked away(after pocketing their profit), leaving the HMLs holding the bag on a property with zero equity…even after the whole 12% and points thing.

Dan
www.yourfirstdeal.com