Hard money lender fees?

[BobSm...@yahoo.com]

Dear Group,

What do typical hard money lenders charge in interest rate and/or
fees?

I'm thinking about doing some hard money real estate lending, but have
no idea what to charge.

Thanks.

Bob

[Canzie]

Is this some kind of joke?

Its called hard money for a reason.

--
Michael Papp
iNet Commercial Lending/ Carteret Mortgage
www.iNet-Lender.com
MSN Messenger ID - iNet-Lending

<BobSm...@yahoo.com> wrote in message
news:914a444b5aff6763...@news.teranews.com...

[Canzie]

Answer these questions, I'll help.

What geographic area? Commercial or residential? What LTVs/CLTVs are you
interested in? 1sts or 2nds? Recourse or non-recourse? What licensing do
you have? What lending experience do you have? Personal, LLC, Corporate or
all? Securitization? What type of warehouse line do you have in place?
Will you securitize & market? Portfolio hold? Individual sell? Have you
had your disclosures & security documents verified by an attorney?

Rates/terms are the easy parts.

We have an in house product I call the Pulse Loan. Commercial only, 65%
LTV, 1 year balloon, 15% Interest Only, 8 points. No application, no credit
check, no asset check, no employment check, just an appraisal and title. If
you have a pulse, you get the loan. That is hard money.

--
Michael Papp
iNet Commercial Lending/ Carteret Mortgage
www.iNet-Lender.com
MSN Messenger ID - iNet-Lending

"Canzie" <sa...@nospaminet-lender.com> wrote in message
news:Emtab.12870$hl4....@nwrdny01.gnilink.net...

[Al Klein]

On Fri, 19 Sep 2003 02:03:48 GMT, "Canzie"
<sa...@nospaminet-lender.com> posted in misc.invest.real-estate:

>We have an in house product I call the Pulse Loan. Commercial only, 65%
>LTV, 1 year balloon, 15% Interest Only, 8 points. No application, no credit
>check, no asset check, no employment check, just an appraisal and title. If
>you have a pulse, you get the loan. That is hard money.

I'll remember that one, Michael, the next time I see a property going
at 50% market that has to close in 48 hours.

[BobSm...@yahoo.com]

Would someone be good enough to tell me how the "points" are
calculated?

Thanks.

Bob

[BobSm...@yahoo.com]

Dear Michael,

You wrote:

>What geographic area? Commercial or residential?

Tennessee. Residential.

>What LTVs/CLTVs are you
>interested in? 1sts or 2nds? Recourse or non-recourse? What licensing do
>you have? What lending experience do you have? Personal, LLC, Corporate or
>all? Securitization? What type of warehouse line do you have in place?
>Will you securitize & market? Portfolio hold? Individual sell? Have you
>had your disclosures & security documents verified by an attorney?

I have no clue about any of the above. I'm just a regular guy with
cash who recently joined the local reale state investor's group in my
city. Some of the members get funds for their purchases and rehabs
from private or hard money lenders, and it seems like more lenders are
always welcome.

I've gotten the impression that some pay 10% to 12% annual interest
rate plus points, while others seem to borrow at 10% of the amount
borrowed for 90 days.

I don't know what the lender uses for security (I assume he gets a
mortgage or lien on the property). I thing they tend to lend at about
65% to 80% of LTV.

Bob

[Canzie]

1 point = 1 % of loan amount

--
Michael Papp
iNet Commercial Lending/ Carteret Mortgage
www.iNet-Lender.com
MSN Messenger ID - iNet-Lending

<BobSm...@yahoo.com> wrote in message
news:2dd704955310978a...@news.teranews.com...

[Mortgage Girl]

"Canzie" <sa...@nospaminet-lender.com> wrote in message news:<Emtab.12870$hl4....@nwrdny01.gnilink.net>...

> Is this some kind of joke?
>
> Its called hard money for a reason.
>
> --
> Michael Papp
> iNet Commercial Lending/ Carteret Mortgage
> www.iNet-Lender.com
> MSN Messenger ID - iNet-Lending
>

*wondering how many times Canzie's been called a prick in his life"

XOXO,
Me

[Canzie]

<BobSm...@yahoo.com> wrote in message
news:a81a80fabf2cebd5...@news.teranews.com...

Bob, Hard money lending is tough. The borrowers need to get hard money
because they do not qualify for conventional financing, and they don't
qualify for a reason. Lending is all statistics, like life insurance. You
can bet $$$ on the fact that someone with many lates on thier credit & low
fico score are going to be trouble in the future. In fact, lending to them
is exactly that - a bet.

On paper, the numbers always look great - a 12% return, plus points, fees,
etc. Its getting the people to pay on time that is the hard part, and the
only insurance for that is to have STRONG security. Low LTV. Mortgage and
note on the property. Note on thier car. Personal guarantees, co-signers up
the ying-yang (spouse, mother, father, uncle, dog) so that when the borrower
goes bad, you can go after the mom's house. You are never the nice guy.

Most importantly, only use money that you KNOW you can afford to lose, or
can afford to have tied up in an illiquid asset for years. If the borrower
goes BK, you will get your money eventually, but only after alot of time and
legal fees.

[Canzie]

"I Wanna Be A Mortgage Girly" <Mortgage...@hotmail.com> while playing
with her Barbies upstairs in her room while drooling over her poster of Luke
Perry, allowed the cookies to fall out of her easy bake oven, which fell on
her mommy's keyboard, and what dribbled forth was
news:7f86afa0.03092...@posting.google.com...

>
> *wondering how many times Canzie's been called a prick in his life"
>
> XOXO,
> Me

By people of who's opinion I respect? Rerely. Sometimes.

By people like you, where it is meaningless? Often.

Bob asked an intelligent question regarding hard money. I have *vast*
experience in this arena, and shared my thoughts and experience with him.
In my opinion, that is what newsgroups are for, sharing what you know,
posing questions to people who know more than I.

I have posted questions (I had a very informative thread on eminent domain
going for a while) where I was ridiculed, given answers, and asked more
questions. I learned. Baird even chimed in when he was sober enough to
post intelligent suggestions. Al posts like it is, to the point I wish he
worked in our office. And you call people a prick.

When I know something from *direct* experience, I chime in. When I don't
know something, I ask. So when I need to know how much salt is supposed to
go on the fries, or how much mayo goes on the whopper, I'll be sure to
contact you.

You would be floored to be aware how many leads for loans/mortgages I get
from these boards, unintentionally. My favorite recent one said "I want to
use you, you seem to piss of the right people". Does not get better than
that.

As a side note, every post you send regarding me mentions a penis. I'm
beginning to feel sexually harassed.

[Al Klein]

On Tue, 23 Sep 2003 13:21:52 GMT, "Canzie"
<sa...@nospaminet-lender.com> posted in misc.invest.real-estate:

>I have posted questions (I had a very informative thread on eminent domain

>going for a while) where I was ridiculed, given answers, and asked more
>questions. I learned. Baird even chimed in when he was sober enough to
>post intelligent suggestions.

I must have missed that minute.

> Al posts like it is, to the point I wish he worked in our office.

So make me an offer. I know where NJ is. :) (I pass through it a few
times a year.)

[Trust Deed Basics]

Be very careful on residential loans, the federal truth in lending
rules have been beefed up to prevent "predatory lending". I have
written a booklet on the subject of investing in trust deeds if you
are interested, here is the link. Or email me with questions

http://www.geocities.com/trustdeedbasics/trustdeedbasics.html

BobSm...@yahoo.com wrote in message news:<a81a80fabf2cebd5...@news.teranews.com>...

[bairds...@yahoo.com]

On 23-Sep-2003, "Canzie" <sa...@nospaminet-lender.com> wrote:

> Al posts like it is, to the point I wish he
> worked in our office.

How many toilets do you have?