Information on Hard money lenders

[Brian Rowles]

Hello, 

I am new to real estate investing, been doing a lot reading and watching video's and pod casts. I feel I am ready to jump in the game. I have been looking and researching hard money lenders just to find out there is a lot of lender who keep wanting to throw money my way (this makes me happy, I think) I am not sure what is a good deal in hard money lending. I have been offered 75% of the purchase price and 100% of the rehab, 80% of the ARV and 100% of the rehab but I have to have at least 15% of the loan and 3 months of payments in an account set aside for that deal, another one was $150,000.00 9.9% one time fee zero interest for up to 24 months on a revolving line of credit, and a few variations of these deals. I have excellent credit, not much debt besides my residence, not sure this matters, but it make me feel good :). lol

I am curious what hard money lenders y'all have used and what kind if deals are out there. 

I am looking for something like an 70%-80% of the arv at 12%-15% and no more than 3 points for 12 to 24 months interest only. 

Any input will be greatly appreciated. 

Brian 

[Alex Bekeza]

@Samuel Pawlitzki@Brian Rowles

Hello Brian,

Congrats on getting your ducks in line and being so close to pulling the trigger.  I'll say that there are some better deals out there.  

For example, I work with one lender who will offer 75% LTV on the purchase price (NOTE : sometimes hard money lenders will require first time investors to stay at 70% LTV) plus 100% rehab so long as the total LTV does not exceed 90% of the purchase price. They'll offer interest only payments in 1 year, 2 year and 4 year options with rates going from 8.5% - 12%.

3 points is pretty standard for a deal that small UNLESS a broker wants to hack off a half a point or so to help out a first time investor who they believe in and want to work with long term.

As far as all those lenders throwing money at you haha One of the biggest problems I see is loan officers wasting peoples time by acting so stoked on every deal they hear about and taking investors into the process without doing DUE DILLIGENCE. 

Its important to find a broker who will be very inquisitive of all the details of your deal up front.  Don't take this the wrong way!  If they are good at their job they are trying to find any potential hurdles to closing before taking a single cent of yours for appraisals, credit reports, etc.