Updated about 8 years ago on . Most recent reply
Hard money lender questions
Has anybody actually found hard money lenders that lend at 100% for purchase and redevelopment in DC and Baltimore or is this a myth? We have thus far found 75% for purchase and 100% for redevelopment projects that are in upscale areas in both cities, but we have not found anyone that loans more than that.
What terms do these lenders loaning 100% typically seek? Our current crews have over 25 years of construction experience in DC, and I am a commercial real estate developer, and was an investment banker on Wall Street in various capacities, and my partner is a real estate agent in Pennaylvania and Maryland.
Most Popular Reply
@Chad Greenhill Why are you not raising private capital and securing bank lines? With all that experience hard money lenders should be used for your one off projects not your main source of capital.
There are only a few hard money lenders in DC that I know will do 100% financing. Expect to pay dumb rates, 13-16% and 4 points plus. Also prepare to have your money at risk. 100% financing is a frivolous practice that puts both the lender and borrower at risk.