Hard Money Payments

[Shawn Pacaoan]

Can someone provide an example of making payments when using a hard money loan?

[Stephen Akindona]

Yeah! Lets say you borrow hard money at 5pts and 12%. 5 points just means you get charged 5% of the loan amount as a one time loan origination fee! 

If you borrow 100k 

You would pay 5k as a loan origination fee (This can be rolled into the loan and not necessarily paid out of pocket)

Then you would pay 1% a month as a payment to the hard money lender. In this case you would pay $1,000 a month. Because the interest rate is 12% annualized you pay 1% a month.