Private Money vs Hard Money Loans

[Scott Alfano]

What have your experiences been like for each loan type? When doing private loans, what kind of interest % are you usually offering to pay? Lastly, what kind of calculators do you use to determine total interest owed for the end of the loan? Most calculators online are for loans with periodic paybacks, not a single lump sum payment. I'm, of course, most interested in private loans, but I am just preparing for a day when that may not be possible and would have to use a hard money loan.

[Account Closed]

@Andrew Syrios is spot on. I'm a HML on the East Coast, and our rates are significantly more expensive than traditional private money loans. Look for rates to be closer to 11-13% and 2-3 points for hard money loans (if it's a competitive lender). These are typically interest only loans with no prepayment penalties, and feel free to reach out if you're looking for more info @Scott Alfano . I also recommend using the calculators on BP to calculate interest payments (look under tools). Good Luck!