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Someone emailed me these terms for a loan. Can you tell me if this is a god deal?

Property Type: Residential and Commercial, investor properties only

Lien Position: First Mortgage only

Loan Amount: $25,000 Minimum to $500,000+

Funding Rate: Up to 70% of the After-Repaired-Value (ARV)

Standard Term: 12 months with monthly extensions possible.

Standard Interest: Typically 13.75% with no payment due in the first month. Rate is based on borrower’s credit score and experience.

Standard Points: Typically 4 points. Points can be rolled into loan balance. Points are based on borrower’s credit score and experience.

Closing Costs: Costs incurred to close the transaction, including lender’s legal fee, title insurance, recording costs, etc, will be paid by borrower, however, these costs can be rolled into the loan balance.

Rehab Funds: Rehab funds are released in a series of draws as work is completed. Rehab portion of the loan typically not to exceed acquisition cost.

Guarantee: Personal guarantee required.

Loan Docs: After-Repaired-Value Appraisal (obtained by Onward Financial)
(for each loan) Purchase and Sales Agreement
Summary of Rehab Work to be completed
Title Policy (obtained by Onward Financial)
Hazard Insurance

Quick Funding: Once a borrower has been approved, funding of investment properties can occur as quickly as 5 days. No borrower re-qualification is required for subsequent transactions.

Thanks Wesley

That was a great explanation. I do understand when you put it in reality terms.

So do you recommend a hard money loan to a first timer, with just average credit?? and really no money to put down?? I haven't located a property yet, right now just researching financing options.

Do you not need to put any money down for these kinda loans? do they give you money for rehabbing and what type of credit do you need?

Thank you so much dcg123 and everyone who responded

Thanks for the replys, I will definately do more research.

Can anyone tell me what is the best type of loan for someone new who's looking to get into rehabbing, has no money but decent credit. Are there loans out there that offer money for the purchase and rehab of the house? credit is about 625, but I have no money to get started. I do have about $30,000 in equity in my own home, should i pull that money to start???

I live in the Atlanta Ga. area, in a very up and coming city where many people are starting to move to. I would like to get started in Real Estate Investing. I am now just doing as much research on the Net as possible and maybe looking to take some courses. I would like to get into Wholesaling and also Rehabbing. The thing is I don't work, i'm a stay at home mom but do work as a Travel Agent part time. I have very limited income, but loads of time to invest in building my Realestate buissness. My husband supports and encourages this and is willing to be the one to finance the deals, he has decent credit of 610. How much would we need to get started in Rehabbing and Wholesaling?? I have no expeirence and really don't even know what to look for in a property. We own our own home, which we bought as a Hud home. We have about $30,000 in equity in the home we own. Should I use that to get started? Here are my questions.

Is Atlanta a good market for Investors??
Should I do an equity line of credit to start my first deal??
Or is there financing where we can put No money down??
What do I look for in a good investment property??
Should I maybe first start at Wholesaling to build my money before doing a rehab?
Do hardmoney lenders pretty much fund your whole project?? How exactly does harmoney lending work??
Are there any Investors in Atlanta or anywhere close that would be interested in mentoring me??

I'm really eager to get started, but really don't know where to start. I'm doing research everyday for hours on end, but really haven't found any step by step guides.

Thanks to all that reply