OfflineHere are the questions you need to ask when dealing with Hard Money Lenders....
1. How many points do you charge?
2. What is your interest rate?
3. Is it 6 or 12 month loan?
4. Is it amortized over 30 years?
5. Is it an interest only loan?
6. What percentage of the after repair value do you loan?
7. How much money do I have to bring to the closing table?
8. What is the minimum credit score I need to have?
9. Is there a prepayment penalty?
10. Will you extend the loan if the rehab is not complete after the balloon date?
11. If they do, do you charge to extend the loan? _____ How much? ________
12. Are you a broker or do you provide the loans yourself?
13. How long does it take to close the deal?
14. Who pays for the inspector who comes out to inspect the property?
15. Who takes care of the repair list?
16. Do you honor assignment of contract fees?
17. If they do, do you limit the amount of assigning fees you can charge
per deal?
If they do NOT honor assignment fees then move on and find a new lender. To become a successful wholesaler, you need lenders that will allow you to make an assignment fee so that you can make money.
By: Kenny Rushing
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Thanks for the information. That was a great post! I've been contacting HML, but was just asking the regular questions you would ask for a traditional loan. Thanks for the insight!
These are good questions. I hope they help you.
"THE ARCHITECT OF YOUR DESTINY IS YOURSELF"
"SUCCESS WALKS HAND IN HAND WITH FAILURE"
Do the HML's need to be from my area? Does anyone have suggestions on HML's that they have used and had good experience with.