Posted by Ben on November 13, 1999 at 16:34:05:
pre-payment penalties? Some people have a clause where they may get a few month’s interest if the loan is paid within six months. It sounds like he doesn’t but check the fine print. Also who pays his lawyer’s closing costs, you or him? Other than that, this isn’t bad, I’ve seen much worse.
Terms for hard money lender - good or bad? - Posted by Laura_El Paso, TX
Posted by Laura_El Paso, TX on November 13, 1999 at 15:11:06:
Hello everyone. We love being able to learn from what everyone inputs here and greatly appreciate everyone’s opinions. Here’s our question:
My husband and I found a hard money lender. We were wondering if his terms were good. From what I have heard they are about right. He is charging $1,500 or 4% per loan (whichever is greater) for his fee. Also 15% interest on the loan and it is calculated per day. So if we take a loan with him for $50K for 15yrs and flip the property in 30 days we only pay interest for 30 days. Also he is loaning strictly on the property and not by our credit. Does this sound about right?
Do the numbers work?? - Posted by Lynn_Atlanta
Posted by Lynn_Atlanta on November 14, 1999 at 11:27:13:
Put the numbers to the test. If you can pay the hard money fees and walk away with the profit you want, than it doesn’t really matter. If his fees are high, but you can make a quick $30-$50K at closing than it becomes irrelevant.
p.s. The fees do sound pretty comparable to what other hard money lenders are doing.