I use hard money loan often, to me it is just a normal way of business, I use it mainly for short term flipping(less than 6 month), which I had done much lately, interest rate I pay between 9% to 13% depends on length of time.
I mainly use one same lender, he knows me well, and I gave him 1st lien on a property that I own free and clear, so I can use the money any time, no question asked, and I don't have to put lien on each and every property I try to flip, at the end of 6 month, I either sell the property or refi, then pay the investor back, I had utilize this way of operation over few dozen times,
what I am try to point out here is, hard money lending has a huge risk, and it is not for every investor. what makes the project work is mainly rely on experience of the borrower, if the borrower can flip the property within 6 month, everyone is happen, if the property sit over a year, then the investor will begin to worry, especially new investors.
there is house I pass by almost everyday, I had an offer on it once, the basement wall caved in, cost about 11k to fix, anyway, I lost to some new kid on the block, he must just came back from some guru camp, borrowed some hard money and try to flip it, now 2 years later, the basement wall still caved in, house is all mold, what an eye sore to the neighborhood, in the case, the hard money lender had to formally foreclosure the property and end up with a piece dump, the house still worth 95k if all finish up, but now it may another 35-40k to finish up.
VA-landlord is a good realtor, and experienced, I am sure many people trust him, but try to borrow money in an open forum, is not such good idea.
and bEsc is also right about the risk involve, if anyone willing to do some hard money lending, make sure you have 1st lien on mortgage, if you sit as the 2nd, you might as well forget the deal..
haha, just IMHO, what do I know, just a dump 掏大粪 de....
I mainly use one same lender, he knows me well, and I gave him 1st lien on a property that I own free and clear, so I can use the money any time, no question asked, and I don't have to put lien on each and every property I try to flip, at the end of 6 month, I either sell the property or refi, then pay the investor back, I had utilize this way of operation over few dozen times,
what I am try to point out here is, hard money lending has a huge risk, and it is not for every investor. what makes the project work is mainly rely on experience of the borrower, if the borrower can flip the property within 6 month, everyone is happen, if the property sit over a year, then the investor will begin to worry, especially new investors.
there is house I pass by almost everyday, I had an offer on it once, the basement wall caved in, cost about 11k to fix, anyway, I lost to some new kid on the block, he must just came back from some guru camp, borrowed some hard money and try to flip it, now 2 years later, the basement wall still caved in, house is all mold, what an eye sore to the neighborhood, in the case, the hard money lender had to formally foreclosure the property and end up with a piece dump, the house still worth 95k if all finish up, but now it may another 35-40k to finish up.
VA-landlord is a good realtor, and experienced, I am sure many people trust him, but try to borrow money in an open forum, is not such good idea.
and bEsc is also right about the risk involve, if anyone willing to do some hard money lending, make sure you have 1st lien on mortgage, if you sit as the 2nd, you might as well forget the deal..
haha, just IMHO, what do I know, just a dump 掏大粪 de....
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