I’m curious…
Are there such things as long term hard money loans?
Most of the HARD MONEY lenders I’ve come across only offer loans for quick flips and re-habs. Are there any that offer buy and hold loans? Or is get-in get-out the nature of the beast?
Example: Say I’m feeling silly and want to pay 15%-20% on a 10 to 20 year loan. Are there any Hard Money lenders willing to give me the cash for this deal?
Any comments are welcome.
acoopmcp,
Generally, the longest hm loan that you will see is 3-5yrs. But the question is: why would you want to pay that high rate for longer than that when you can refinance within the first 1-3yrs?
There are longer term loans out there for more than just quick flips and rehabs. I hope this helps.
Yes! There are HML’s willing to lend with terms longer than 12 months. DHLC has a 30 year program. But as the previous poster asked…WHY would you want to pay those high rates for that long?
In answer to your question, no I wouldn’t want to pay so much for so long.
But just thinking hypothetically, if someone comes across a deal where they are making a 30% ROI and don’t mind forking over 12% to secure a hard money loan for the project, I was wondering if there were Hard Money lenders who would agree to a longer term.
It is better to get the HML and then refi into a better deal after credit has improved.