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Updated over 11 years ago on . Most recent reply
Money Lending
I have two money lending deals that have come my way. The first one is a SFR that they want to borrow 70k for 6 months on and is worth 190K based on comps. The second in 60k for one year to purchase a 120 foreclosure. What would be an average/fair % I should charge on these? Thanks Hugo.
Most Popular Reply
You need to research the local lending market a bit, but off the cuff I'd say 10% and 3 pts, or 14% and no points possibly, assuming that the borrowers are not novices. The LTVs appear to be low as you state them, but I'm not sure whether you are comparing to ARV or current unrehabbed market value.