Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 8 years ago on . Most recent reply

User Stats

57
Posts
15
Votes
Jay Sechowicz
  • Investor
  • Philadelphia , Pa
15
Votes |
57
Posts

Hard money lending

Jay Sechowicz
  • Investor
  • Philadelphia , Pa
Posted

Hello all,

I am looking to find my second property and am thinking about the possibility of going with a hard money lender. I just don't know much about how it works. I've read articles and what not but have not really actually talked to people that know what they're doing about it. It seems like it could potentially be pretty risky. Also, do hard money lenders have certain criteria The property must meet?  What are usually the loan terms? Are there better situations than other to use/not use this strategy?  I'll take all the advice and insight I can get.

Thanks a lot,

Jay 

Most Popular Reply

User Stats

16
Posts
11
Votes
Domenic Marchetti
  • West Warwick, RI
11
Votes |
16
Posts
Domenic Marchetti
  • West Warwick, RI
Replied

@Jason Hirko - It is a short sale in RI. 2 bedroom bungalow with only 525 living space and 1300 lot size. Roof is only 3 years old, windows 4 years old, and vinyl siding 5 years old. The property has been on the market for about 2 months with 2 price drops by the bank (negotiator in place and eager to sell). 

Selling Price: Around $49,000 (nothing in contract yet)

ARV: Approx $80,000 (based on comps and 2 seperate BPO's)

Tax Assessment: $67,000

I am getting a 12% rate, interest only payments (minimum of 1 year interest to be paid).

My GC is going through the house tonight and I have an appraiser going in next week. Hoping to submit a hard offer by Friday of next week. 

Loading replies...