With hard money lenders do you have to pay for the points out of pocket up front or can you get financing that covers the points? Also, does anyone know where to look for reputable hard money lenders that lend to Bloomington, In. Thanks
Have you tried the Hard Money Lenders link to the left of this post under Investor Resources?
Your question regarding points totally depends on the lender. Some will and some wont, it just depends on their lending criteria. Just call them up to find out.
Joshua09, do you, by any chance, work for Incarnate Microfinance? If so, please disclose!
Based on my experience in previous deals, lender points are usually (80% of the time) are deducted out of the closing proceeds. In cases when there are interest reserves, this is also deducted out of the closing proceeds as well.
We all have to understand that it is a benefit to the lender to take out as much capital out of the closing proceeds, simply because the lender is still collecting the same amount of interest, while principal capital at risk is less.