Is this an appealing deal for a lender?

[DeMario Drummond]

I'm currently searching for a private loan of about 100k-120k for an auction property that I would live in, yes live in. But eventually it could a rental property. I plan to grab a house in texas with or without this loan, but it would help me do it alot faster and the requirements seem flexible.

I have two properties in Detroit,MI owned outright that I could use for collateral. One in my name, one in my companie's(if that matters), both bring in 15%+ cap rate and worth at a min 75k together (haven't gotten them appraised for accuracy). I have a 100k+ salary and 10k+ cash for a down payment towards the points.

The problem I'm seeing with my research is that hard money loans are normally for 3-6 months and/or 12-24 months terms. And at an average of 7-12% I can't make that payment, but I can for a 3+ year term. I can even sweeten the pot and up it to 14-17% if given a lengthier term. I plan to pay the loan off in under a year if not sooner by paying over the arranged amount so that it goes direct to principal(at least that's the idea).

With all that said, the collateral, salary, RE portfolio... Would this deal be even considered by a hard money lender? Why or why not? Are they held to tight standards on term lengths and percentages?

Thanks

[Derek Dombeck]

Not real attractive to us lenders.....
1. You want to live in it. That makes it a consumer loan and not a commercial loan.....not good for us.
2. We don't like longer terms because we make money from origination points. I'd rather do 2 loans a year at 12% and 3 points than 1 long term loan at a higher interest rate because of the points.
3. Your collateral in Detroit would be ok, but typically we would only go up to a 65% LTV. So, depending on what you are going to buy and how much you pay for it, there could be LTV issues.
Hope this helps.