Due Diligence, and Hard Money lenders

[Chris Delacruz]

Hello all,

I have 3 questions that I am a bit confused about.

1- They always say do your research and due diligence on property, but how can i find out if the property has any back taxes or liens that will affect me later on?

2- I am a bit confused with wording and numbers, when reading about Hard Money lenders, In a book i was reading recently is stated " …a typical hard money loan may be 70-90% financing for 6 months, paying 2-3 points and 15% interest or more." What the heck does that mean? Can someone explain for simplicity sake the arv is 100k and purchase price is 20k, and 15k in repairs how this deal would work out.

3- With those same numbers how would the numbers pan out using private lenders?

Thanks