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Updated over 10 years ago on . Most recent reply
Hard Money Lending: Is it 'the norm' for 'advances' to be paid AFTER the work is complete?
I got my first Hard Money Loan. Everything is fine, but I was surprised that I won't be 'advanced' any rehab money. They will only reimburse me after work is complete. This is a $50k rehab, so I will need about $15k liquid at all times in addition to the $15k I brought to closing.
Terms are $1000 loan fee, 1.5% prepayment fee, 10% on 20 yr amortization.
$78,000 loan
Thoughts?
Most Popular Reply
Wayne Brooks
#1 Foreclosures Contributor
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Wayne Brooks#1 Foreclosures Contributor
#1 Foreclosures Contributor
- Real Estate Professional
- West Palm Beach, FL
20 year amortization?
Prepayment penalty, if prepaid before when?
Yes, loan draws for rehab would be After the work being paid for is complete. It should be on maybe thirds, not one lump sum after All work is completed though.