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Updated about 10 years ago, 11/03/2014
HML Commitment Fees
I've found a home that I want to be my first investment in a suburb of Cleveland, Ohio. It's $225,000 with $150,000 in repairs with an ARV of $600,000. I though that I had found a Hard Money Lender that would finance me with an unfavorable credit score and no money down, just pay closing costs. He told me to find a property that the cost + repairs were less than 65% of the ARV. When I called him ready to make an offer he told me that he needed a $2500 commitment fee? Are commitment fees typical of Hard Money Lenders? This lender is not local so I'm wondering if this is a scam.