Hard Money

[David Vincent]

I need help. I have a deal under agreement for 140,000, renovations is 53,000 and the ARV is between 280k to 305k. Can someone help me understand what this lender is offering? What 11% mean?

$170,000 loan amount

$125,000 at closing(less interest reserve and closing costs) – balance as work is complete.

11% + 3 points (I may be able to get him to 2%)

Broker fee $3,500

Thank you

[Kyle Spiewak]

From your post 11% looks like the interest rate they are charging you on the $170,000 loan amount. 3 points fee is the lender fee (which seem high) and the broker fee is an additional fee perhaps being paid to the person sourcing the loan. What is the prepay penalty, reserve requirements and length of the loan? What is your calculation of your required cash to close?