Wholesaler Questions About Hard Money For Rehab Project

[Jeffrey Mark]

Hello Everyone,

I have been a wholesaler in Maryland since December and so far I have closed 4 deals as an investor. I continue to market for new leads in search for my next big deal to keep my wholesale business going but Iately I have began to do research on hard money loans for purchase and repair projects. This sparked my interest after a deal I closed with an investor who received hard money to purchase and repair a property I sold to him. Later I found out the investor made about 70 grand on the property and I thought this was something I could do.

From my direct mail marketing I received a lead on a home I would love to rehab in Baltimore city. The purchase price of the home I am still negotiating with the seller but I believe I could get her down to maybe around $65k. Houses in the area are selling once it hits the market in no longer than about two months and the ARV is about $190k. The house needs no more than $40k for a high end rehab. I have a lender in mind I would like to go with but I just need a little advice:

Is is smart to do my first hard money loan and rehab so early in my real estate career?
What are the points associated with hard money loans?
What are important things I need to know before I get the loan?
What to type of interest rates and incentives to stay away from when getting the loan?
What are the best type of contractors to use? What are good contracts to go in with contractors to ensure the best quality of work is being done?
How long does a good rehab take because I would like to fix up the house in no longer than a month.

Any other information would be greatly appreciated. Thank you all