Hard Money remains alive and well. Hard Money Loan to Value ratios now stand at 65% to 70%. We had a source that went to 75% LTV, but they have pulled back. Rates tend to be in the 11% range, and fees are 3 to 5 points. HOWEVER, 99% of Hard Money Loans are for Investors Only. Make sure your Hard Money buyers are “Investors”.
We are addressing Hard Money loans again b/c there are a lot of buyers using Hard Money to purchase “unmarketable” properties (with major condition issues). They then repair the properties and “flip” them with hefty profits. Note also that these buyers tend to have close relationships with REO Realtors who give them inside tracks to buying properties with “condition issues”
Making “flips” easier is the fact that there are several lenders who are much more flexible with respect to “flipped properties” (unseasoned titles).
Founder/Broker | JVM Lending
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