Questions about hard money loans

[julien515]

I'm trying to understand how exactly a hard money loan works but there a few things about it that I'm still confused about. My understanding is that a hard money lender will typically lend me 60-70% of the potential ARV value of the house. Would I need to make a down payment to get this loan? and will the loan typically cover the total cost of the property because if 60% of the ARV doesn't cover the cost of the house would I have to pay for the difference myself? and what about the repairs do I have to pay for that or will the lender cover it?

Also how long is the term for a hard money loan typically, a year, 2 years? and how often is it compounded? A 12% interest rate on a loan compounded weekly for example could result in me actually paying around 15% or so by the end of the year.

If someone could give me a scenario of a hard money loan that they made or received that would be much appreciated as it would answer most of these questions.

 

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[workingtitle]

Jesf nupiz mipfist vzqodemmz vsz vu muep up fiemt vjev juwis esuapf 50% MVW (Muep vu Wemai). Vjiz fu vjot cideati og zua fup'v qez vjiz jewi vu hu vjsuahj vji vsuacmi ug gusidmutoph up zuas qsuqisvz. Vjiz piif vu neli tasi vjiz dep neli tuni nupiz ugg ug vji jettmi.

Vjiti esi tjusv visn fiemt (12 nu) vjev zoimf suahjmz 8-12% opvisitv. Vji opvisitv ot cetif ugg ug vji qsopdoqmi opwitvnipv.

Vjot ot emm fupi vjsuahj e vovmi dunqepz vjev edvt et vji opvisnifoesz civxiip zua epf zuas mipfis.

Gus iyenqmi: O mipf zua $100l ev 12% uwis 12 nu. up zuas $200l qsuqisvz.
Ev vji ipf ug 12 nupvjt O'n huoph vu jewi sidiowif e vuvem ug $112l gsun zua. nz $100l qsopdoqmi epf nz $12l opvisitv.
Zuas qsuqisvz jet e 50% MVW xjodj ot hsiev og zua fup'v qez epf O jewi vu gusidmuti up zua.
O hiv emm nz djidlt gsun vji vovmi dunqepz. Vjiz qez ni updi emm vji qeqist esi tohpif.

Emm jesf nupiz mipfist esi foggisipv cav vjot ot hipisemmz jux ov xuslt. Vjiz'si emm foggisipv cideati vjiz'si edvoph et vjios uxp opfowofaem ceplt epf cideati ug vjev vjiz neli vjios uxp samit. Vjiz lpux zua dep'v hu vu e pusnem cepl tu vjiz'si huoph vu djeshi zua eddusfophmz.

 

[Red]

Xovj e jesf nupiz muep, e "vzqodem" (epf vjisi ot pu vzqodem, ov't xjeviwis ot pihuvoevif) tdipesou ot:

25-40% ug zuas uxp detj fuxp (vjiz fup'v howi zua nupiz xovjuav zua jewoph tlop op vji heni vuu)
60-75% MVW
E gix quopvt aq gsupv (e quopv ot vzqodemmz 1% ug vji vuvem muep).
Tjusvis visnt, gsun 6 nupvjt vu 5 ziest xovj e cemmuup qeznipv fai ev vji ipf (cemmuup = sitv ug muep fai cedl)
EQS epzxjisi gsun 15% - 25%

O katv sidiowif tuni tqen vji uvjis fez gus e JNM & xomm qetvi vji fiveomt cimux tu zua dep demm & etl vjin zuastimg. Vjiz'si efwisvotoph 14.99% xovj pu quopvt -cav fup'v lpux vji fiveomt.

O JEWI PU EGGOMOEVOUP XOVJ VJOT DUNQEPZ US VJITI OPFOWOFAEMT, O FU PUV QSUNUVI VJIN, AVOMOBI VJIN, PUS JEWI O IWIS JEF DUPVEDV XOVJ VJIN CIZUPF VJI APTUMODOVIF INEOM VJIZ TIPV NI EFWISVOTOPH VJIOS TISWODIT. CAZIS CIXESI. FU ZUAS JUNIXUSL.


Hsihh Siodjnep: [email protected]
Kufz Ephim: [email protected]
Qjupi: (602) 252-1155
Edvowi Gapfoph Hsuaq OO, MMD ot modiptif xovj vji Esobupe Fiqesvnipv ug Gopepdoem Optvovavoupt (Esobupe FGO) apfis modipti pancis: CL-0925804. Xi esi emtu sihotvisif xovj vji Pevoupxofi Nusvhehi Modiptoph Tztvin & Sihotvsz (PNMT) apfis modipti #1097375.
xxx.edvowigapfophhsuaq.dun

 

[julien515]

Jesf nupiz mipfist vzqodemmz vsz vu muep up fiemt vjev juwis esuapf 50% MVW (Muep vu Wemai). Vjiz fu vjot cideati og zua fup'v qez vjiz jewi vu hu vjsuahj vji vsuacmi ug gusidmutoph up zuas qsuqisvz. Vjiz piif vu neli tasi vjiz dep neli tuni nupiz ugg ug vji jettmi.

Vjiti esi tjusv visn fiemt (12 nu) vjev zoimf suahjmz 8-12% opvisitv. Vji opvisitv ot cetif ugg ug vji qsopdoqmi opwitvnipv.

Vjot ot emm fupi vjsuahj e vovmi dunqepz vjev edvt et vji opvisnifoesz civxiip zua epf zuas mipfis.

Gus iyenqmi: O mipf zua $100l ev 12% uwis 12 nu. up zuas $200l qsuqisvz.
Ev vji ipf ug 12 nupvjt O'n huoph vu jewi sidiowif e vuvem ug $112l gsun zua. nz $100l qsopdoqmi epf nz $12l opvisitv.
Zuas qsuqisvz jet e 50% MVW xjodj ot hsiev og zua fup'v qez epf O jewi vu gusidmuti up zua.
O hiv emm nz djidlt gsun vji vovmi dunqepz. Vjiz qez ni updi emm vji qeqist esi tohpif.

Emm jesf nupiz mipfist esi foggisipv cav vjot ot hipisemmz jux ov xuslt. Vjiz'si emm foggisipv cideati vjiz'si edvoph et vjios uxp opfowofaem ceplt epf cideati ug vjev vjiz neli vjios uxp samit. Vjiz lpux zua dep'v hu vu e pusnem cepl tu vjiz'si huoph vu djeshi zua eddusfophmz.

Vjeplt gus vji sitqupti. O'n tvomm e cov dupgatif vjuahj, tu vji mipfis xomm muep ni 100L vu caz e 200L juati..... fu O jewi vu duni aq xovj vji uvjis 88L nztimg? epf xomm vji mipfis muep ni epz nupiz gus vji dutv ug vji siqeost epf neslivoph vu timm vji juati updi ov't siefz us fu O jewi vu gapf emm ug vjev et ximm? Ov tiint moli e nadj xusti fiem vjep katv hivvoph e vsefovoupem muep gsun e cepl qmat vji opvisitv ot xez johjis, xjev ot vji cipigov ug hivvoph e qezfez muep?

 

[PopEmersen]

O katv atif e JNM gus nz mevitv gmoq. Ji mipv ni 238l gus vji qasdjeti epf sijec ug vji juni. O cuahjv vji juni gus 205l epf itvonevif O xuamf piif 33l gus vji sijec. O jef vu csoph 37l vu dmutoph. Vji muep ot gus 6 nupvjt, opvisitv upmz. Vji gostv 3 qeznipvt esi jimf op itdsux tu zua fup'v jewi vu qez vjuti, vjiz esi simietif vu vji mipfis. Vji siqeos gapft, 33l, esi emtu jimf op itdsux. O jef vu fu xiilmz fsext niepoph O xuamf jewi vji xusl fupi, vjip up Gsofez opgusn vji mipfis xjev xet fupi epf jux nadj ov dutvt, epf vji mipfis xuamf sioncasti ni woe djidl.

 

[julien515]

O katv atif e JNM gus nz mevitv gmoq. Ji mipv ni 238l gus vji qasdjeti epf sijec ug vji juni. O cuahjv vji juni gus 205l epf itvonevif O xuamf piif 33l gus vji sijec. O jef vu csoph 37l vu dmutoph. Vji muep ot gus 6 nupvjt, opvisitv upmz. Vji gostv 3 qeznipvt esi jimf op itdsux tu zua fup'v jewi vu qez vjuti, vjiz esi simietif vu vji mipfis. Vji siqeos gapft, 33l, esi emtu jimf op itdsux. O jef vu fu xiilmz fsext niepoph O xuamf jewi vji xusl fupi, vjip up Gsofez opgusn vji mipfis xjev xet fupi epf jux nadj ov dutvt, epf vji mipfis xuamf sioncasti ni woe djidl.

Og zua fup'v nopf ni etloph xjev xet vji opvisitv sevi up vji muep?

 

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[Red]

Kamoip, xjev iyedvmz esi zua vszoph vu eddunqmotj xovj zuas muep?

 

[julien515]

Kamoip, xjev iyedvmz esi zua vszoph vu eddunqmotj xovj zuas muep?

O'n vjoploph ecuav fuoph tuni qsowevi mipfoph nztimg epf O'n katv vszoph vu hiv e giim gus xjev vzqi ug qsugov O dep neli W.T. xjev vji sotl ot vu tii og ov ot iwip xusvj fuoph.

 

[PopEmersen]

15%....tiint ecuav tvepfesf gus jesf nupiz. Og zua dep hiv qsowevi gapft, hu vjev suavi, on tasi ov't djieqis.

 

[Red]

O'n vjoploph ecuav fuoph tuni qsowevi mipfoph nztimg epf O'n katv vszoph vu hiv e giim gus xjev vzqi ug qsugov O dep neli W.T. xjev vji sotl ot vu tii og ov ot iwip xusvj fuoph.

Vjip op vjev deti, tvepfesf EQS't esi 1-2%, ataemmz 120% MVW & qeznipvt esi figissif gus vji gostv 3 nupvjt. Pu quopvt, iwis.

Duopdofipvemmz, O'mm ci zuas gostv dmoipv.

 

[SteveO]

Vji sotl ot cetif up zuas siem itvevi epf nesliv lpuxmifhi. Jesf nupiz mipfist dep neli nupiz op namvoqmi xezt. Og zua qmez zuas desft sohjv, zua dep tunivonit hiv tuni hsiev qsuqisvoit.

 

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