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hard money?

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Visit www.lendinguniverse.com commercial hard money lenders in california lending hard money loan. -’Crisis Only Just Beginning’ Right About the Crash, Peter Schiff Sees More Pain Ahead Posted Nov 24, 2008 01:55pm EST by Aaron Task in Investing, Newsmakers, Recession . Lending Universe…

Question by tool3bars: hard money?
what is hard money,what are the risks,what interest rate should i expect,how do i find a safe and reliable lender?

Best answer:

Answer by allamericanred2
hard money is a type ofshort term mortgage that is loaned to you specifically for the purpose of buying distressed real estate to repair and once completed then resell or refinance within 6- 12 months. Generally they will loan you up to 70% of the after repaired value for both the purchase and for the repairs at 13-18% with a 5% loan fee (5 points). They will release the money for repairs to you from an escrow account as they are completed.

For example:

A run down house worth 100,000 after repairs…

ARV( after repair value) 100,000
- 30% 30,000(expenses,interest, insurance,
profit)
balance available for
purchase and repair
70,000
purchase cost loaned 50,000
repairs costs loaned 20,000

to locate hard money lender google hard money lender plus your city or state,

Know better? Leave your own answer in the comments!

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hard money

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  • the dream

    The first answer pretty much nailed it; I know 2 hard money lenders that do exactly that.

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