HARD MONEY CAN BE EASY MONEY FOR YOUR REAL ESTATE DEALS TAMERA ARAGON
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You are looking for an unsecured or personal loan, or open-ended line of credit;
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You are not willing to pay for and obtain a current value appraisal, if required;
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You are not willing or able to provide a “future value” appraisal for a hard money construction loan or
remodel loan, including an itemized cost sheet, plans, blueprints, a licensed contractor, and permits
where required;
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You are looking for an “angel” or speculative investor to fund a project without sufficient collateral or
personal equity stake;
What are the interest rates, points and fees?
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Interest rates vary but are not usually less than 11% depending on the investor, borrower qualifications,
loan amount and purpose, property type, location, lien position, term, prepay period (if any) and any
applicable state law;
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Terms vary between 1 month and 20 years, mostly interest-only (some amortizing loans), depending on
the investor, borrower qualifications, loan amount and purpose, property type, location, lien position,
term, prepay period (if any) and any applicable state law;
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Points: 2 to 10 points charged, depending on the investor, loan amount and purpose, borrower
qualifications, property type, location, lien position, term, prepay period (if any) and any applicable state
law;
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Fees: processing, underwriting, title insurance, escrow, doc prep, recording, wire transfer, title
messenger, survey, and other fees also apply when applicable. Appraisal fee, where required, is prepaid
by borrower C.O.D. at the time of service.
Can the fees be paid from the proceeds of the loan?
Sometimes, if there is enough equity in the project. This is frequently the case.