Quote:
Originally Posted by HardMoney
4. Conduct some research. It is best to educate yourself with things relevant to hard money lending so you’ll know what to expect when you negotiate with lenders.
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This is the best tip. I had heard the term before but didn't know what it was really was so I did a little research. What jumped out at me was not how easy or hard it may be to get a hard money loan but the following:
- Hard money loans are a step below subprime offerings, and often the last possible way of securing financing.
- Interest rates can range between 10-20%, and up to 25-30% if the borrower defaults on the hard money loan. The cap is typically as high as the law allows...
- These types of loans are really offered as a lifeline, and should be treated as such.