Hard Money Loan Offer

[Gary Cooper]

Hello all! I'm a novice, so forgive me if I sound naïve. My property (owned free and clear of any mortgage) is appraised at 100k. A lender has offered me this to refurb the house: Loan $30k Rate 16% Points 5 Amortization/ Term 10 years Escrow Taxes/insurance/repairs Pre-payment Penalty None My question is, is this a good/fair deal? My plan is to either sell the property for top dollar, or rent it for a very nice ROI. As always, your thoughts are appreciated.

[Chris Mason]

It's actually pretty bad, but for a loan amount that small as a mortgage, you may not be able to do any better.

The flat costs of CFPB compliance are there no matter how small the loan -- this is what the outcome of that looks like. They have to make up for it by offering worse terms/conditions on the loan.

You might be better off going with an unsecured loan. Either a personal line of credit or, frankly, a credit card.