Are the Terms of this Hard Money Lender a Good Deal?

[Shalante Davis]

Hello Masterminds!!! I am a new investor, I have completed a JV project lately that turned into a fiasco, but I was able to get out with some profit. Every deal is a new learning experience and I am ready to pull the trigger on my own. I decided to go with a hard money lender that my broker had recommended to me. I would like an unbias opinion of their terms, she stated since I am under by broker she can offer me a good deal. I called several HML and think this sounds good. 0 pt, 10% annual, 65% ARV, and $75 draw fee. Are there any other questions, I should be asking her at this point?

[Nghi Le]

@Shalante Davis

This clears things up.  It's funny that they say no points because their "10% fixed cost" is essentially the points.  This is equivalent to a 4pt, 12% interest loan program if you hold it for 6 months.  If you hold it for any less, the 4pt 12% program would actually be cheaper.

What is the loan length for them?

LTV is really low, so that protects pretty well as a lender. You'll have to put a lot of money as down payment.

I don't like that they make you pay upfront.  Shouldn't have to pay anything upfront other than an appraisal (which doesn't cost $1,000).