Hard Money

[Shawn Murphy]

I am new to Bigger Pockets but have invested in real estate in the past. We always did owner financing. I am a real estate broker of 10 years and my husband is a retired GC. We came across a deal we cannot pass up here in south Florida. We are looking for a hard money loan for 85K. The purchase price is $105,000. We have done the numbers the ARV is $175k -$220K if done high end. I need help! How does this work? What should we expect to pay worst case? I'm in West Palm Beach Fl.

[Ann Bellamy]

Hard money rates are regional.  To find out what they are in your area, call hard money lenders in your area, not the national companies.  National hard money has to depend on appraisals and usually have set rates.  Local lenders form their own determination of value, and will have their own rates that they want to earn.

To find local lenders, look on

1.  BP's hard money directory

2.  Go to local REIAs and ask around

3.  American Association of Private Lenders (google it)

4.  Scotsman Guide

5.  There are other directories, but start with the above