Lender offer for pulling cash on my property... am I missing something here???

[Aaron Yates]

Ok, So I have been speaking with Private Money Exchange about pulling money out of one of my properties.

Here are the numbers

Loan amount $23,000
Closing Costs $6000 - Taken out at closing
Cash in my hand at Closing $17,000 and no money out of pocket
24 Month Interest only $3450 - 15% intereste rate
Balloon of $23,000

So it will cost me $10,000 to get $17,000 cash.... am I missing something here or is this the most expensive money ever??

UPDATE:
Ohhh.. and did I mention its a loan AGAINST a free-and-clear property??? And the loan offer is 50% LTV.

I'm in the wrong end of the business I guess. If I am looking at this the wrong way can someone please explain it then???!!!

[Jon Holdman]

24 months interest at 15% would be $6900, not $3450.

Effectively 26 points up front, though I'm sure that's a combination of points and fees.

Unreal. I guess "there's a sucker born every minute" and that's what they're counting on.