Thread: Hard Money Loans

Does anybody here have any direct experience with hard money loans on purchases of multifamily properties with 100+ units?

I have a few properties that are ripe with opportunity, and have a less than desireable credit score. Im also new to the business so Im willing to forgo the higher interest rate on properties that are producing substantial positive cashflow, in order to make a name for myself as a successful entrepreneur.

I don't want to sound negative or discouraging but.... there are no loans of this nature.

Hard money loans for 100+ multi-family will be geared toward seasoned investors. The loan to value will likely be 65% or less. These loans will be short term in nature and will expect to have some level of rehab or repositioning.

Anyone with a performing property will be asking market value. Below market value properties will have something wrong with them that needs to be fixed. Lots of people with money at risk have already attempted to right the ship. Usually they have run out of money or the market turned on them.

I talked to one "businessman" who wants to borrow money at 100% interest rate. He says that in California there is no limit on hard money loans. Is he trying to scam people..?thanks

Originally Posted by SteveO

I don't want to sound negative or discouraging but.... there are no loans of this nature.

Hard money loans for 100+ multi-family will be geared toward seasoned investors. The loan to value will likely be 65% or less. These loans will be short term in nature and will expect to have some level of rehab or repositioning.

Anyone with a performing property will be asking market value. Below market value properties will have something wrong with them that needs to be fixed. Lots of people with money at risk have already attempted to right the ship. Usually they have run out of money or the market turned on them.

That doesn't mean you can't invent them. As far as I know, at least in Sweden, usury is rather hard to define. Isn't that so? I haven't found a single law that clearly defines what usury is in exact terms. Just vague descriptions. I can't speak for USA of course. But I would pretty much assume the same thing for you.

Originally Posted by hatterasguy

Usury is very well defined in the US.

I guess that is where we differ the most.

Originally Posted by hatterasguy

Usury is very well defined in the US.

I can see the reason for usury laws but have always felt that the reward should be proportional to the risk and there are certainly lending 'opportunities' out there that I wouldn't touch.

Originally Posted by hatterasguy

Well you can always go outside the law, go to the Mafia. But if you don't pay they won't just bother you with phone calls...oh no...Tony will pay a personal visit and remove a finger or something. Unlike banks they will collect...

I've also seen some non mafia lenders with some big teeth. A local attorney had his license suspend for a year on an ethics violation after failing to make reasonable effort to pay a debt to a local businessman with deep pockets and close ties to the Oregon Bar. A lawyer with no license doesn't have much of a chance of making a living.