Hard money Loan request
Purchase price of 2 million, 70% LTV, 720+ fico, property located in Encinitas CA, current appraisal at 2,125,000, short sale, buyer has assets, flip and fix, 3 months of interest, I/O, need to close by January 10th 2016.
Please send interest rate quote and total points charge, please include 1 point to broker. thank you in advance for anyone who could recommend someone who could fund this loan.
Hi,
Two Million dollars ($2,000,000) is 70% of Two Million Eight Hundred Sixty Thousand dollars ($2,860,000) and it is very unlikely any hard money lender would loan on this at 70% of value as the risk is extremely high.
A hard money lender will probable loan 60 or 65 percent of your purchase price with you putting 35 or 40 percent down! Your going to need skin in the game to get a lender to loan you the money.
Your probable going to pay 3 to 5 points for this kind of loan and be at 12 to 15 percent interest!
Good luck,
GR
$1,400,000 at close to the highest rate allowable by law over 2 years? Granted, I have never done such a thing, but that sounds ridiculous to me. I would never take out a hard money loan for myself personally for any reason.
There are personal loans like Prosper, Lending Club (not for the amount you’re seeking) if you are having trouble getting one from a bank or credit union.
And what about commercial real estate loans? This would be over 20-30 years instead of 2, so the monthly payment would be astronomically smaller.
There are even stated income commercial lenders so you might have a better chance to qualify.
I would give you one that I know of, but I’m not sure if I’m allowed to post that on here.
Why would you listen to the “advice” of someone who has never done anything like that? I have no idea. But it just seems like a bad idea to take out all that money at those ridiculous terms.
If you have the cash that the hard money lender would need you to have… you would have the cash that a stated income lender (over 20 or 30 years) would need you to have.