OfflineI've always been told to receive a hard money loan, you have to pay money up front. Is this true? How does all that work?
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How do hard money loans work???
Posted on: Tue, 03/16/2010 - 01:34
I've always been told to receive a hard money loan, you have to pay money up front. Is this true? How does all that work?
It depends on the HML and the situation. I've called around and most require you to put funds into escrow, generally $1,000 and up to 15% of the loan amount. You get the funds back when you sell, and the purpose is for cost overuns or if you have difficulty making the monthly interest payments. Everything is negotiable, however.
There are a lot of good posts on here about HML's, including a recent one about Brookview Financial and their terms.
Hope that helps and good luck!
Tom
I have worked with www.brookviewfinancial.com
they have a pretty detailed website with most of the information you would need to know.
Phil
Luck is when Preparation crosses paths with Opportunity!
Here is another good hard money lender reference. They do not require a monthly payment. The draw back is they are not lending in all 50 states. Go to there website and they tell you what states they will lend in.
http://dohardmoney.com/
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