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Updated over 9 years ago, 06/02/2015

User Stats

374
Posts
120
Votes
Stone Teran
  • Investor
  • Cincinnati, OH
120
Votes |
374
Posts

Got a hard money offer. Are these numbers in line with market?

Stone Teran
  • Investor
  • Cincinnati, OH
Posted

I'm looking for buy a half-vacant 40+ unit apt building for $400k and approached a hard money lender to finance $160k.  The remainder I will pay cash.  This is what he came back with:

1. $3500 appraisal fee and $1000 screening fee paid after pre-approval letter but before closing

2. $2500 legal costs and $5750 in upfront points paid at closing

3. Interest rate of 11.99% on basically a 5-year note amortized over 30 years.

It's a reputable shop but I'd like to know if these terms are similar to what others are seeing or if I'm getting taken to the cleaners.  Thanks.

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