All Forum Posts by: Tyler Case

Seconded. Rates hard money rates are certainly going up. Research and reference checks help to ensure you're dealing with a legit lender. Also bear in mind that some lenders specialize by state. For example, I lend on properties located in the state of Florida. 

 Hi Tyler! For a buy/hold you'd still need to pay off the loan at the end of term (in my example 2 years). Most people refinance out of it. Some lenders might grant a short extension of time if needed, but you'll find that these loans are typically 1-2 year terms. 

Hi @Tyler Rowley ! Nice name! I'm a private/hard money lender and can share a hypothetical scenario below where an investor wants to purchase a property for $300,000 to fix and flip. They need a hard money loan to help secure the asset quickly, as they are already under contract and have less than 30 days to close. They'll use a separate piece of real estate that they own outright (appraised at $500,000) and some of their own capital to finance the renovations and sell the property within a 2 year period (note that they could also cross-collateralize both properties to gain additional equity if needed). 

New Asset Purchase Price: $300,000

Collateralized Asset Value: $500,000

Loan Amount: $325,000 (65% LTV of Collateralized Asset)

Interest: 13% per anum 

Fees: 4 points 

Term: 2 years 

In this scenario, the lender would offer 65% of the value of the $500,000 collateralized property as a loan to acquire the subject property. The loan would be interest-only payments for 24 months. At the end of the term the borrower would pay the entire principal back. If the borrower sells the property before the term, they would also pay off the entire principal balance in that transaction -- less any pre-payment penalty, if applicable. In order to fund the deal, the lender would charge lender's fees -- in this case 4 points ($325,000 x .04 = $13,000). 

Monthly Payment = (loan amount x interest rate) / 12 

Monthly Payment = ($325,000 x 13%) / 12 = ~$3,520 

Hope this helps! 

Hi @Dustin Seager! I could potentially be of assistance here. I'll send you my number in direct message. 

Hi Kate! Welcome to SWFL, and congrats on your success to date! I'm around if you want to explore utilizing private/hard money for any of your upcoming deals :) 

Echoing what Chris said! Each situation is different, and online templates usually don't do the trick! 

Hi Joe, 

Sounds like a great opportunity for you! I would maybe offer a split of the cash flow / equity gains on your flip business. If I were this HNW individual, I would probably expect full reimbursement for my initial capital contribution (down payment/closing costs) first, then 50% of the remaining profits. For the buy/holds, you could maybe offer them 20% of the gross cashflow until initial capital contribution is recouped, then 10% for the lifetime of the deal. 

It sounds like they're doing well and just want to help you out, so maybe ask them what their return expectations are? 

 Hi Kris! I'm a private lender. Happy to chat, just shoot me a DM :) 

 Hi Muhammad -- sending you a DM.