Working with so many investors, I know that they are always looking for private money, especially those who are still flipping (uh, I mean “redeveloping,” now the politically correct term).
Here’s a typical scenario (as of today’s date) for hard money. I would also add, this is for people just getting into the market. As an investor gets more experience and develops a track record, then the money gets cheaper.
Typical Loan Program
60-65% LTV for cash-out refi’s
60-65% of ARV less repairs for purchases
12% note rate typical – may be 13% in certain circumstances
6 points origination fee
Interest-only payments monthly (we can do interest reserves)
12-24 month term
Title & escrow fees as charged by third party
4-6 months minimum interest guaranty (in lieu of a prepay)
Call or write if you don’t understand the above parameters.
Sacramento Real Estate Reflections 