Is 12-18% APR Good for Private Lenders?

We pay 12-18% APR for long term (12-24 month) investments in real estate. Is this high enough to attract private lenders or institutional for that matter? It is in San Antonio but I wonder about other areas.

Thanks for any help,


Are you advertising your private rates or asking if thats a good rate??

If you want to consider it an ad then it is and I wouldn’t turn someone’s money away, but I am interested in what it costs to get private lenders in other parts of the country. I can only guess 18% is near the top but there’s no way to know without asking. I might be able to advertise 15% in some publication in another state and make some extra money. I wouldn’t want to waste my money advertising 18% in an area where 20% is the norm. After all, helping improve one another’s business is what REIC is all about.

I have never gone to a HML before but I know some do charge as much as 25% I hear. Of course in many states, I know Fl that would be considered usery and it s illegal…So you may want to check out what the highest rates you may advertise per state…

i am just not sure if the state would go after you or not…its not my field

No it’s the other way around. We’re offering to PAY 18% to lenders, not charge 18%.

The one HML I have experience with charges 4 pts and prime + 4.75%, int only with a min of 4 mo int payments. So you can figure what to pay by knowing what they charge.


There are HML’s that charge a little as 9.99% for their money. You will pay about 3pts to them for the low rate. There are also programs for 12-15%, but you will pay less points (1-2) to them at closing. Hard money isn’t always going to break your pockets. But you will pay a higher rate because of the speed and flexibility.

Believe it or not, some programs require NO credit, NO appraisal, and NO application.

I hope this helps.

I’m certainly in the believe it group because that’s just what we do. We don’t fill out apps, or qualify, or do appraisals. You can get by without all that crap when you pay 18% and the lender is in at 75% LTV or below.

I’m just trying to find locations where I can hand people 18% interest in return for their investment.