What rates are you paying for HML?

[Rolanda Eldridge]

Fellow BP, I know this varies by market, but what rates are you paying for HML?

Working some deals...A) Resell deal all in 40K ..ARV $65-$69k

1. Rate 15% with 5 points 65% LTV.. No money out of pocket

2. Lend 25K, I need to bring 15K .. Pay 5K after resell..

I usually buy/ hold or sell owner financing so this will be first "FLIP"

Any input appreciated....

Thx

[Brian Gibbons]

OK you want to flip,

Is this hypothetical or is it a deal?

Do you have a contract?

ARV is 65-69,

I would look for no points, 65% ARV for loan from private lender, 12 % a year, but use the money for 3 - 4 months. You sell it.

Or a JV Partner like a Doctor, that puts up 100% of acquisition and rehab, you find it, sign the seller up, supervise the rehab, hire the re sell agent, sell it, split net profits 50 50.

Go to your REIs and say

"I am looking for 2 types of people:

Private lenders, 12 % a year, 65% Loan to Value

JV Partners for 50 50 split, I do all the work, we split the profits.

Any takers?"