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

[Stone Teran]

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.

[Seung Lee]

That sounds pretty standard for the interest rate and terms, but the appraisal fee sounds high.  The points seem high as well.  The "standard" that I've been quoted have been 3 points.  Yours is 3.5%.

The 5 year term is nice, since most that I know won't do more than 2 years, interest only, balloon.

I don't know what the Ohio lender market is like, but I'd say that it's within "normal range" but definitely not the best prices out there.  The more corporate you go with the lenders, the higher the fees tend to be.  The rates are usually similar at 12% and 3 pts.