Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. 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,

User Stats

27
Posts
0
Votes
Clint Worland
Pro Member
  • Real Estate Broker
  • San Diego, CA
0
Votes |
27
Posts

Small Hard Money Loan (popping my cherry)

Clint Worland
Pro Member
  • Real Estate Broker
  • San Diego, CA
Posted

Good morning Friends.-

I have a client who is in need of about $10-$15k in order to fix up a rental property that just became vacant after a long term tenant moved out. They are asking to borrower a total of $50k in order to fix the unit up and also pay off some personal debt. The LTV works out just fine but I wanted to know of any pitfalls I should be aware of since this is my first time. They are fine with a 12%, paying all the interest up front and also a 1 year loan with a 6 month prepayment penalty. After 1 year what is the most common thing to put in the promissory note if they don't pay it off? How high can the rate jump to? I know that DODD FRANK has crushed some of the hard money out there so I want to make sure this is done right. I have an attorney looking into this as well. Any suggestions or advice would be great.

  • Clint Worland
  • Loading replies...