New Investor looking Hard Money Lender in Ft. Lauderdale

Good morning, my wife and I are now ready to invest in Fixer upper, we secured a Heloc of 59,000.00 with 36,000,00 paying of or 2nd leaving us with 23,000.00

We have finished our business plan derived from the many books we have read, we have credit score in the mid 700’s my highest been 737 and lowest around 697.

we are looking for HD Lender that will not penalize with high rates because we a lacking experience.

HML are expensive. You will be charged points up front and you will most likely have a high interest rate. Its not because you are new rather because its hard money. How much in rehab costs do you need? If you can get a conventional loan on the property and just borrow what is needed for the rehab, you may be able to save. Good luck!

Try to avoid HML. It sounds like your credit is not an issue. Convential loans will have a much better interest rate and if you can go A paper there will not be a prepayment penalty.

Hello, Both previous posts are correct. Your situation does not warrant using a HML. Always go traditional first. Use HML as a last resort.

Thanks for the replies, I do have a conventional moneylender lined up, but we are trying to flip the properties and my mortgage guy tells me I will have to keep the properties for 6 months to avoid pre-pay penalty.

And the properties we are looking @ may not qualify for conventional loan.

I have read about six different books on flipping properties,

  1. Recommend buying moving in a selling after 2 years,
  2. Recommend buying properties that banks will not lend even if bill gates was the buyer,
  3. Recommends buying properties that just needs cosmetics.
    4,5 and 6 needs to be thrown in the garbage.

Your money guy must not work with a variety of Lender’s or he is not doing his homework for you.

Most A paper Lender’s DO NOT HAVE Prepays.

If you are going into the B/C Lenders they may have prepays but they allow you the option upfront to waive the prepay for a little higher rate.

There are still others that have no title seasoning conditions.

Talk to your money guy and clarify all this. ???