Mostly with hard money you don’t want to pay the points up front, it wouldn’t make since on a short term loan. Also HM lenders make they profit by charging you more points because on an early payoff they don’t get to collect all that long term interest.
There are several other fees and taxes that you do have to pay at closing and it’ll cost you anywhere from
$3000-$10,000 depending minly on the price of the house and then the lender’s fees.
Call Rob at 410-385-1818 (Baltimore, MD) He can answer
all your questions and even give you some hard money.
Greeting,
This may seem very simple to most of you and has probably been asked numerous times. When getting money from a hard money lender for whatever the reason may be flipping, rehabing etc. Their are the cost of the loans, when are those paid? For example the points, are thye paid up front when you get the loan or when you pay off the loan. I only want the loan for short term but would prefure to pay all the cost at the end of the loan is this possible?
Brent_va
My experience is that there are no hard and fast rules. It’s up to what terms you can negotiate with the lender. I’ve borrowed with points paid at the end and with 1/2 the points paid up front and the other 1/2 paid at payoff. I’ve borrowed with interest only payments, with interest accruing but not paid until the payoff, and with amortising payments and a balloon. It’s really up to what you can negotiate with the lender and what fits your situation. Your projects should be profitable enough that these costs are just relatively minor expenses no matter how or when the payments are made. For clarification, my HM loans have been from private lenders, as opposed to finance companies.
Just my .02
Joe C.