See how we work with you with our hard money loans FAQ
1. What is the difference between a real estate investment loan (hard money) and traditional bank loans?Traditional banks generally have many more guidelines and lending criteria that make it nearly impossible to borrow money from them for the purpose of buying, rehabbing, and reselling residential properties. Hard money lenders specialize in loans against these types of distressed properties. Hard money loans are usually short term and have somewhat higher interest rates, BUT can close quickly and finance repairs, and closing costs when purchasing within 70% loan to value.
2. What is the loan term?Our loans are 3, 6, and 12 month loans. You will be required to pay an extension fee at the time of each renewal.
3. What are your rates and fees?Our rates and fees will vary depending on the quality of the deal and your personal financial situation, but the interest rate will range between 9.9% and 14.9% and the origination fees will range from 2% to 5%. Each deal will also have the following fees:
- Processing Fee $400.00
- Administration Fee $250.00
- Flood Cert. Fee $40.00
- Wire Fee $90.00
- Appraisal Fee $ 450.00
- Doc Fee- $375.00