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Updated over 9 years ago, 06/02/2015
Got a hard money offer. Are these numbers in line with market?
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.