All Forum Posts by: Tim M.

Great points Chris!! Appreciate the thoughtful logic. The points become very expensive since I only plan on holding the loan for a short time.

Thanks Chris and James! They charge 2.5%-3% in fees split between the private money company and the investor who will fund the loan. There is no pre-payment penalty or balloon because they want the loan paid off as quickly as possible. The longest they will hold the loan in 12 months. Appreciate any tips you feel will help. 

Hello BP- I'm a first-time investor in Oakland, CA. I'm in contract on a duplex that I plan to owner occupy. The building is in extreme disrepair and needs extensive work, foundation, full remodels on both units, new plumbing, electrical, roof, and sewer lateral. A conventional lender is not an option because they wouldn't appraise the property without ordering termite inspections. I have an option for private money bridge loan 80/20 LTV @ 10%. This will allow me to purchase the building, do the remodel and refi ASAP. I have strong credit and W2 to support a loan. Does this sound like a reasonable deal? Thanks!