Sherman Bridge rate too good to be true?

[Stan Tallman]

Hey BP! I have been working with New Western here in Dallas and they have connected me with their sister company hard money lender Sherman Bridge. They are offering me a 7.75% 1.75 origination points for 75% arv on a flip deal. I have never heard of such a good rate...12%/2pts seems to be going rate lately...seems too good to be true. SB agent has only been at BP for 9 months. Also, they charge a $1100 processing fee. Any thoughts?

[Wenner Nunes]

Hi Stan,

I'll chime in as I had a call with Sherman Bridge regarding this hard money program they offer. I think if you have the liquidity - this is a great option. From my understanding, they will cover 75% of purchase price (25% down payment from buyer) and 75% of rehab costs (up to 75% ARV as you mention), so it would require a larger cash reserve to cover those repairs, which is why I decided to go with another HML for the time being.

Looks great though! Let me know if you have a positive experience with them.