Does softer hard money, actually exist?

[Gabe G.]

I am in a situation where I have a high credit score.

And would have a downpayment.

I am looking multi family /small apartments in the indianapolis area.

Conventional financing wont work right now for me, so I am looking for a lender, who will loan on the deal, at above market rates, say 7-9 percent, 30 yr ammor, 3-5 yr balloon.

Does this exist? Most hard money lenders i see have ridicoulous interest rates and only loan on fix/flips.

Maybe I am looking in the wrong places?

Any opinions?

Thank you,

[Dion DePaoli]

Yes that exists.  Some might say, look for "private" instead of "hard".  

I suppose before you run off into an expensive loan, hopefully you are aware that a complex with 5 or more units is not residential finance and therefore not conventional.  As such, residential conventional loan standards do not apply.  

Multi-family finance is favorable, always has been, in regards to rate and terms.  There are some circumstances where a portfolio lender (a lender who holds the loan) may be the best option and at times the not so best.  Essentially depending on what else is in the portfolio.  

Of the commercial finance spectrum, MF carries some of the best rates and lowest down payments if you and the complex qualify.  Fannie Mae (not residential) is one of the largest investors in the those loans in the US.  

I would not look to private or hard money until you have exhausted commercial, provided you are after complexes with a qualify number of units for commercial finance.  If the deal works in relation to the terms above, seems like you should be able to get some attractive financing, unless there is some problems with the collateral unknown through the post.