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Tried using a private hard money lender for a quick flip and got burned on the interest rate
Thought I was saving time avoiding banks but the guy charged me 14 points upfront and my profit margin vanished, has anyone else had better luck with bridge loans?
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kelly.emma5d ago
Oh man, I totally get it. Did the guy at least buy you dinner before he took your profit? I had a similar thing happen with a private lender who was recommended by a realtor friend. He said his rates were competitive but when I got the paperwork it was 12 points upfront plus a 2 percent origination fee, and I didn't even catch it until after I signed because I was in such a hurry to close. By the time I sold the flip, after paying him back plus all the interest, I think I made like two grand for three months of work. That's when I started looking into bridge loans too, but those have their own fees and hoops to jump through.
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