Typically, how much higher is the interest rate of hard money lenders?
If possible, could someone give an example of a property that was purchased using a hard money lender?
For LTV’s at or below 65%, you can get 9%, but rates can be as high as 15% in some cases.
I hope this helps.
I have a newsletter with articles sent to me from Trump Investments every few weeks, this guy on Trump’s team- i think his name is Donald Sexton- had an article on hard money, that was very accurate. Bottom line, they are “the cost of business” (how he phrased it) in the sense that they should not be used unless absolutely necessary and the deal still makes sense on paper. I personally don’t have anything wrong with these banks except, they are expensive. Most of the time people use them and don’t have to, which is the real issue. It’s not a bad idea getting second opinions on specific scenarios be it any resource one may have (lawyer, rei website, etc.)
=< 65 ARV @ 9%…who offers this?