First Hard Money Deal - Am I a sucker?

[Thomas Moran]

Hey BP-

Closing on my first deal soon. After talking to 5-6 different lenders, this is the one that was pitched to me the most favorably. Now I’m finding a bunch of hidden fees that add almost 10k to the loan. Am I just a noob and this is pretty standard, or is this a sh%# deal? 

[Andrew Postell]

@Thomas Moran it's always important to get everything in writing before you commit to using a lender.  If a lender is making mistakes at this stage (aka, not showing all their fees) that might be a good indication of things to come.  The "cheapest" is not always the right place for us to go with our business.  All mechanics do the same work right?....not hardly.  Having a good mechanic, or a good barber, or a good anything is worth it.  Trust your instincts on this stuff.  Do get things in writing.  Maybe ask some other investors who they have used (the North Carolina forum might be a good place for that).  Oh, and don't forget to try to use your title company when possible.  Sometimes a lender may not know all the title fees....so they do guess a little on those.  Meaning, they might be wrong on the title fees.  I usually don't compare title fees because of that.  But points, originations, etc.  All of those come from the lender....but so does good work...and that's not always on a spreadsheet.  Hope this helps!