Hard Money Loan....Advice?

[Lazaro La Rosa]

Good morning BP!

I am new to REI and am working on landing my first deal. Hard money is the only way for me to go unless i find someone who is willing to seller finance.

I found a Hard money lender who structured a deal which to my newbie ears seems good, but again I am new to this. 

I have no cash reserves and a FICO of 592 

 I own a property outright with a value of $125,000

He will give me a 60k hard money loan on the house to use as a down payment and cash reserves for another hard money loan on the investment property. 

the rate on the first loan is 10-12% with 3-6 points

the rate on the second loan is 9-12% with 2-4 points 

What do you all think?

[Andrew Postell]

@Lazaro La Rosa Hard Money Loans are generally temporary loans.  If these loans are 6 month loans and you can't make the balloon payment....that means the lender can foreclose and get your home.  What are the terms on these loans?  What is your plan to refinance out of the hard money loan?