Posted by Nate(DC) on January 16, 2003 at 17:16:23:
This sounds like the Fannie/Freddie rehab loan which requires, among other things, a full set of plans and a LICENSED general contractor, other than the owner, doing the work.
Is it?
NT
What are the hard money terms in your area ? - Posted by DK
Posted by DK on January 15, 2003 at 11:03:45:
In FL it’s 15%, 5 points, 65% LTV, generally intrest only payments and a 3 month pre-pay penalty.
I’ve heard that in other parts of the country, OH for example, 18% is quite common.
What do you pay and where are you ?
Re: What are the hard money terms in your area ? - Posted by Nate(DC)
Posted by Nate(DC) on January 16, 2003 at 17:17:43:
Around DC it’s typically 18% with 6 to 8 points, 65% LTV. The kicker is that most of these guys will also want you to have SOME of your own money in the deal, regardless of LTV, until they know you and have gotten comfortable. So you might get someone to lend 90% of acquisition and 100% of rehab, up to 65% LTV.
There is one guy I know of who does 100% financing but he charges 10 points.
NT
Re: What are the hard money terms in your area ? - Posted by Kristine-CA
Posted by Kristine-CA on January 16, 2003 at 09:08:56:
The best true, equity-based hard money I’ve found is 18%. No points. No junk fees. No pre-payment penalty. Terms can be negotiated for any length of time. I had a buyer use this guy and I was impressed with his service. However, I suspect that he would start foreclosure proceedings about five minutes after he didnt’ get a payment.
Sincerely, Kristine
Re: What are the hard money terms in your area ? - Posted by Zack
Posted by Zack on January 16, 2003 at 24:54:14:
In Atlanta this is what I see the most of, however I have seen much better and much worse.
5-10 Points
15-18% Interest
65% LTV
Re: What are the hard money terms in your area ? - Posted by michael e. v. knight
Posted by michael e. v. knight on January 16, 2003 at 24:37:13:
Hi DK
i was paying 16% and 2 points for 6-12 months term in New England. Now i have found a nationwide lender that will do rehab loans with:
90% of current appraised value (not purchase price!) for investment property (95-97% for owner occupied).
7 1/2% interest rate
3 1/2 points
up to 30 year term no balloon.
They do check credit but it sure beats the high hard money cost and besides most hard money lenders today are checking credit anyway, unless maybe its a private investor.
Happy financing,
michael e. v. knight
Re: What are the hard money terms in your area ? - Posted by roy kelley
Posted by roy kelley on January 15, 2003 at 18:55:16:
what part of florida are u in-where are these hard lenders
Re: What are the hard money terms in your area ? - Posted by Sean
Posted by Sean on January 15, 2003 at 11:31:12:
For a complete newbie, here in my area, 10 points, 15% interest only for up to 12months no prepayment penalty. Though there are 2 competing in my area, so newer programs are coming out all the time. One has 18% interest now, but its deferred payments (ie no monthly payment due)
Re: What are the hard money terms in your area ? - Posted by DK
Posted by DK on January 16, 2003 at 13:43:04:
Would this lender lend to a fix up person (w/out a pre-pay) that might retire the loan after four months ?
Also, wht kind of LTV are we talking about here ?
Re: What are the hard money terms in your area ? - Posted by DK
Posted by DK on January 16, 2003 at 13:48:38:
What do you think the reaction would be if some one came in and provided loans that would be cheaper in both points and intrest ?
Let’s say 11.5% & 3.5 points ?
Re: What are the hard money terms in your area ? - Posted by DK
Posted by DK on January 16, 2003 at 07:55:54:
So one needs to come out of pocket w/the rehab funds, no?
Re: What are the hard money terms in your area ? - Posted by Zack
Posted by Zack on January 16, 2003 at 24:51:57:
Can I have the name and number of that lender?
Re: What are the hard money terms in your area ? - Posted by DK
Posted by DK on January 15, 2003 at 20:58:33:
Central FL
Wherever you find more than 5 investors congregating, you’ll find hard money lenders.
Go to your local REIA meeting.
Re: What are the hard money terms in your area ? - Posted by DK
Posted by DK on January 15, 2003 at 12:17:42:
Where are you located ?
Re: What are the hard money terms in your area ? - Posted by Kristine-CA
Posted by Kristine-CA on January 17, 2003 at 15:13:26:
For the most part, this lender doesn’t do re-hab money. Will go as high as 68% of as-is value.
Re: What are the hard money terms in your area ? - Posted by michael e. v. knight
Posted by michael e. v. knight on January 16, 2003 at 15:38:09:
Hi DK,
i answered your other post with an example and repeated it here for everyone. The repair $ is held in escrow until co is given by city/town. There are a few ways to do this:
1- borrow $ from friends, credit cards etc until funds are released.
2- have credit with building supply stores and pay off once funds are released
3-tell the contractors they will be paid within 2 weeks of job being completed, even if you can pay them 1/2 when they finish and 1/2 when the funds are released thats great too.
4-offer contractor part of the profits for waiting or just a higher fee.
Here is the other post i wrote:
i will use an example for everyone:
Current Appraised Value: $100,000 as is
Fixed up worth $145,000
Purchase price $60,000
For investor 90% of 100,000= $90,000 loan, the $30,000 difference between what you paid and the total loan amount is held in escrow until work is finished, inspected and certificate of occupancy is provided by city/town building inspectors office.
For owner occupied they will go to $97,000 depending on fico of course.
Again we are talking 7 1/2% interest rate and only 3 1/2 points. The best thing is this is a regular loan that can go as long as 30 years, no balloon!
A fico of at least 620 is required and they do check credit. But it is cheaper than any hard money i have seen and all the hard money companies are checking credit too. If your fico is low, bring in a partner with a higher fico, 620+, to do the deal with you.
If you need more info just email me.
Happy financing,
michael e. v. knight
Re: What are the hard money terms in your area ? - Posted by Sean
Posted by Sean on January 16, 2003 at 08:52:12:
Rehabs for HML’s in my area are done via a Draw system, you do some work, they come confirm the work is done and cut you a check within 24 hours… so yes, you do need some money to prime the pump for the rehab draws. Or work with contractors who will front the materials… (not bloody likely, but not impossible)
Re: What are the hard money terms in your area ? - Posted by michael e. v. knight
Posted by michael e. v. knight on January 16, 2003 at 15:20:01:
hi Zack,
Please email me .
thank you
michael e. v. knight
Re: What are the hard money terms in your area ? - Posted by Sean
Posted by Sean on January 15, 2003 at 13:05:28:
I am in Pittsburgh, PA.
Re: What are the hard money terms in your area ? - Posted by DK
Posted by DK on January 16, 2003 at 12:00:55:
That’s how it works in most areas.
I’m not sure that M.Knight was talking about a true rehab loan. I could be wrong, but if a lender lends 90% of value - not ARV - there is no money in the loan for the rehab.