Understanding Hard Money - Suggest A Hard Money Lender...

[Shawn McCarty]

Hello,

I spoke with a hard money lender who said... "we lend based on the property, 67%, 4 points, 6-12 months, 14%"...

I say ok, I think I can come up with say 10K to get "skin in the game" which should cover the 4 points easily on the type of deal I am looking at. I move alone with the process and next I get this info...

"you must come up with 10% closing (do they charge a premium here because they can? - I have never paid 10% closing or near that on any house I have ever purchased), you must have enough money to begin interest only payments, you must have enough money to start construction before you will get any construction money"

I am accountant, so I understand numbers pretty well... on a 130K loan you're looking at about 30K out of pocket maybe more... I guess I am just not seeing that point in a hard money loan where I am coming up with 25%-35% out of pockets...

Any help, anyone?