Best Hard Money Rates

[Account Closed]

Most of the ads seem to say most HMLs will lend 65% to 70% LTV for rehab projects; but in reality, most of the quotes seem to be in the 35% to 40% LTV range. They often mention only funding 80% of both purchase and rehab cost upto 65% LTV and require the 20% down at closing. Rates of anywhere from 12% to 15% and additional 3 to 5 points.

Are you guys also getting similar rates or are there better rates out there? Either from national HMLs, local HMLs in your area or in Florida?

Heard or aware of HMLs that typically finance 100% of both purchase and rehab cost?

[Matthew Nixon]

@Account Closed

The answer is it depends. LTV, rates, and terms will depend on the...

• Borrowers qualifications 
• Amount of equity in the deal 
• Exit strategy 

You shouldn't expect for a lender to commit to offering 100% financing without first showing them your track record, ability to service the debt, and credit history. And if you do come across a lender who is offering 100% without first collecting more information, it should raise a red flag.

You don't necessarily need to have a deal to establish a relationship with a hard money lender. Reach out to some HML's in your area, tell them about who you are and your past experience, and ask what their typical requirements are for getting pre-approved. Once you get pre-approved it is easier for the lender to give you an idea of what kind of terms they can offer.

Real estate is a relationship based business and having a good hard money lender on your team can add value to your business by..

• Having an advanced knowledge of the markets they lend in
• Connecting you with other business professionals
• Helping you close deals under time sensitive scenarios
• Offering free resources that can help give you an edge

With that being said not all HML's are created equal. You need to find one that is/has...

• Reliable- Someone who says what they do and does what they say
• Integrity- They set the right expectation from the beginning
• Transparent- Upfront about costs and no surprise fees after it's too late

Learning the basic terminology and knowing what a lender is looking for will increase the likelihood of getting your loan request approved. Here is a good article that @Brandon Turner wrote about investment property loans.