Best Hard Money Rate/Terms in State of Washington

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Best Hard Money Rate/Terms in State of Washington

Adrian Chu
Real Estate Broker · Seattle, WA · Member since 2014 · 1k+ posts · 427 votes

Doing some research on hard money lenders. The most common I have seen are 2-4% fee, 1-9 month term, 12% interest price point.

The best rates/terms I have found for Washington is:

2% + $1495 fee, 4-12 month term, 9.5% interest

Have you found anything better?

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Tatiana Gershanovich
Real Estate Investor · Seattle, WA · Member since 2014 · 156 posts · 141 votes
9y

I want to introduce a small correction. All HML that you mentioned above do 75-90% loan to acquisition cost, not LTV. All of them will lend only 70% LTV.

@Jan Wanot if you are talking about Iron Bridge out of Portland, I can vouch for them. They are great guys and we had many deals funded through them.

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  • Eva Croasdale
    Real Estate Agent · Seattle, WA · Member since 2016 · 71 posts · 29 votes
    9y

    I've connected with Veristone, and they are at 12%.  Can I ask who offers 9.5% (you may PM me if you prefer).  I appreciate you having done the research!  

    Happy Thanksgiving to you and yours,

    Eva

    1Reply
  • Timothy Tooker
    Real Estate Agent · Puyallup, WA · Member since 2012 · 240 posts · 95 votes
    9y

    @Adrian Chu

    One major thing you are leaving out in evaluating which company is better is how much money down they are requesting. Each company it varies depending on investors intent.

    0Reply
  • Chris MasonPro Member
    Moderator
    Lender · CA · Member since 2015 · 9k+ posts · 10k+ votes
    9y

    I don't operate in the HML world, but from what I've seen the "Best Hard Money Rate/Terms" is going to be from the HML that is most likely to fail to deliver on funding day, making it a moot point.

    • When I see what people were quoted by hard money that fails to deliver (so they're coming to me last-minute to see if Fannie/Freddie is possible), it's always an amazing-sauce quote that fails to materialize at the last minute. 
    • When I see what people got from a HML that actually delivered (when I am rate/term refinancing them out of it), it's typically a higher rate that got them the property.

    I'm not trying to discourage you from getting a good deal, @Adrian Chu, but trying to warn you against reducing it all to rate/term and introducing reliability issues that could cost you a great property. Never put the financing before the property!

    1Reply
  • Adrian Chu
    OP
    Real Estate Broker · Seattle, WA · Member since 2014 · 1k+ posts · 427 votes
    9y

    75% ltv

    0Reply
  • Christopher Blanco
    Real Estate Consultant · Cleveland, OH · Member since 2016 · 511 posts · 345 votes
    9y

    Look at Lima One Capital, depending on your experience you can get 90% LTV, 9.99%, and 2 points.

    0Reply
  • Jan Wanot
    Investor · Seattle, WA · Member since 2015 · 57 posts · 36 votes
    9y

    I've seen similar rates as @Adrian Chu, with 75 to 80% LTV. However, I've also seen, and am currently chatting with some folks down in Portland that offer 90% LTV, which is helpful for those starting out with limited capital.

    I'll let you know if the guys offering 10% down happen to also provide great service and reliability. 

    0Reply
  • Patrick Britton
    Ann Arbor, MI · Member since 2014 · 1k+ posts · 997 votes
    9y

    From personal experience I will tell you that the points and interests will vary hugely depending on your relationship with a hard money lender.  It will also vary largely on the amount of skin you have in the game.

    When first starting out I remember facing 4% percentage points and 12% interest.  It was also incredibly difficult to get funding when my down payment was under 15%.  But after a while there been times where it is been under 10% with no points and 10% interest.

    If the deal is really good I am relatively confident that Eastside Funding will provide 90% loan-to-value, 2% points upfront and 12% interest with 5% points on the construction loan at 12% interest.  But in this instance, the deal has to be pretty good and cannot be in a remote location.

    1Reply
  • Tatiana Gershanovich
    Real Estate Investor · Seattle, WA · Member since 2014 · 156 posts · 141 votes
    9y

    I want to introduce a small correction. All HML that you mentioned above do 75-90% loan to acquisition cost, not LTV. All of them will lend only 70% LTV.

    @Jan Wanot if you are talking about Iron Bridge out of Portland, I can vouch for them. They are great guys and we had many deals funded through them.

    3Reply
  • Jan Wanot
    Investor · Seattle, WA · Member since 2015 · 57 posts · 36 votes
    9y

    Thanks for the correction, @Tatiana Gershanovich :) That's who I was talking about. 

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Jan Wanot @Tatiana Gershanovich

    Hey guys I have a new funding partner  2.5 points  8%  12 months..

    I tried them out on one for me in Sacramento and they are very very good.. they just funded a few up in Tacoma..

    I can put yall in contact if you wish.

    Tatiana I know Girard at Iron Bridge good folks.

    Podcast Guest on Show #222
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    2Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Adrian Chu  see above new sherrif in town very aggressive... 75% LTC  and for the better borrowers this is not a first timer funding opp.

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
    WebsiteView Page
    1Reply
  • Adrian Chu
    OP
    Real Estate Broker · Seattle, WA · Member since 2014 · 1k+ posts · 427 votes
    9y

    Thanks for sharing Jay. Can you PM me the details?

    0Reply
  • Jay HinrichsBusiness Member
    Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
    9y

    @Adrian Chu  sent you an e mail

    @Patrick Britton  Patrick  shoot me an e mail this week..

    Podcast Guest on Show #222
    JLH Capital Partners51 Review
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    0Reply
  • Scott HawleyPro Member
    Investor · Bellevue, WA · Member since 2016 · 65 posts · 36 votes
    9y
    Jay Hinrichs can you pm me the HML? Thanks!
    0Reply
  • Scott HawleyPro Member
    Investor · Bellevue, WA · Member since 2016 · 65 posts · 36 votes
    9y
    Adrian Chu can you pm me the 9.5% HML? I pay 2 points and 12% right now. Thanks!
    0Reply
  • Sean Reardon
    Flipper · Seattle, WA · Member since 2017 · 26 posts · 2 votes
    9y
    Adrian Chu would you mind sending me the details for your 9.5% HML? Jan Wanot did you ever work anything out with the folks in Portland?
    0Reply
  • Albert Bui
    Lender · Bellevue WA & Orange County, CA · Member since 2013 · 2k+ posts · 1k+ votes
    9y
    Originally posted by @Jay Hinrichs:

    @Adrian Chu  see above new sherrif in town very aggressive... 75% LTC  and for the better borrowers this is not a first timer funding opp.

     Hi Jay,

    Can you also PM the details on that HML connection ? Thanks.

    0Reply
  • Cindy Liu
    Real Estate Broker · Mercer Island, WA · Member since 2017 · 49 posts · 5 votes
    9y

    The 9.99% rate is definitely too high.  I have good referrals with several hard money lenders and have designated loan associates there.  Anyone interested, just pm me.

    0Reply
  • Travis Toler
    Bremerton, WA · Member since 2017 · 14 posts · 2 votes
    9y
    I have found a company out of Wenatchee. C & C investments. They charge a 4 % fee and 9% interest.
    0Reply
  • Cindy Liu
    Real Estate Broker · Mercer Island, WA · Member since 2017 · 49 posts · 5 votes
    9y

    These are really high rates.  I've worked with lenders that charge 8.5% interest and 2% fee for short term loan.

    0Reply
  • Jessica S.
    Developer · Sammamish, WA · Member since 2016 · 24 posts · 6 votes
    9y

    HI Cindy, can you send me the lenders you're referring to? Thx, Jess :)

    0Reply
  • Rajesh Kodali
    Redmond, WA · Member since 2016 · 3 posts · 1 vote
    9y

    @Cindy Liu Please PM me the your recommendations.

    0Reply
  • Edson Reyes
    Bremerton, WA · Member since 2015 · 22 posts · 5 votes
    9y

    @Cindy Liu I would also like info on your HML. Please DM me if you can.

    0Reply
  • Carly Snapp
    Real Estate Broker · Tacoma, WA · Member since 2015 · 21 posts · 6 votes
    9y
    @cindy liu, would you please PM me your HML contact? I would greatly appreciate it!
    0Reply
  • Nghi Le
    Investor / Lender · Seattle, WA · Member since 2014 · 1k+ posts · 730 votes
    9y

    I've closed deals with a dozen different hard money lenders, and all I can say is that it just depends on what you're looking for. For example, some lenders don't allow 2nd lien-holders, which really sucks if you have a private lender who would fund your down payment. I don't have a favorite HML because each deal was a different situation and I chose the more advantageous lender for that deal.

    Usually, lower down payments equate to higher points and interest, and vice versa.  You also have to watch out for the loan fees and calculate that into your points.

    I just closed a deal last month with a really unique lender though.  If you have a rehab loan, most lenders will charge you interest on the entire loan amount, even if you have undrawn construction funds (which really hurts for some of those substantial rehabs).  Some will only charge you interest on drawn funds.  This one that I found doesn't charge you interest on rehab funds... ever (whether drawn or not).  The terms I got from them was 9% interest, 3-4 pts, 12 months, but might be different for you (depending on experience, liquidity, FICO, etc).  The downside is that they're 80% LTC (so they'd only fund 80% of purchase and 80% of rehab).  But if you want to pay the least amount of loan costs, this is a good choice.  PM me if you want to know more about them and I can make an introduction.  Or if you have a specific scenario you want to discuss.

    I do have one rule now when it comes to flip loans: always get a 1-yr loan.  It's rare for a flip to go perfectly right (especially if you're a 1st timer or if your project needs a permit or your contractor/partner screws you over), and we've had to extend/refinance a few times.  This is stressful and expensive.  All lenders are easy to work with until you hit the maturity date.  One lender told me up front that their extension process was easy; apparently, that meant raising my interest rate to 15% AND charging me 1.5 pts every 2 months.  Other lenders are more foreclosure-happy and would rather start the foreclosure process than to give you a couple of days for the refinance to go through.

    If you need a loan for anything, whether it's new construction, transactional funding, short or long-term buy-and-hold, SBA, self-storage, adult family, parking garages, etc, I can probably help you find a lender.

    2Reply
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