Louisiana Hard Money Lenders for Real Estate Investors
Updated: Jun 7
We believe private financing will change the lending world just like Uber changed transportation. During the 2009 financial crisis we learned that most of the fears associated with private financing (predatory rates, high fees, speculation) were regular practice for the major financial banks. The sharing economy is proof that the most efficient way to conduct business is peer-to-peer where both parties can dictate the terms that are comfortable for their needs. The advantages of traditional mortgages are clear – lower rates from institutions that are highly regulated by the government. However, many shrewd investors realized that speed of approval is just as important as low rates. This is where private hard money loans come into the picture – with a turnaround of days, not weeks – you can secure financing on a deal that requires a fast close and beat other investors with a better offer.
WHAT MAKES DO HARD MONEY LOANS DIFFERENT?
No minimum credit score
No experience required
Up to 100% financing
Interest rates beginning at 12%
Origination as low as 3.5%
Lend up to 85% ARV
Loans up to $350k
No prepayment penalties
No payments for 5 months
Louisiana hard money lenders will require you to fill out a credit application and will ask you to submit your tax returns, bank statements, and most recent pay stubs. This is in connection with hard money being owned by private individuals. The individuals who decided to invest their money in hard money lenders only want to protect their assets and make sure that they are lending money to qualified borrowers.
If you are unfamiliar where can you find Louisiana hard money lenders, the best way to find them is to talk to a mortgage company for referrals. A title company or a real estate agency can be good sources of information since they always deal with buyers and sellers of houses. You can also search online. Some of the lenders that you will find lend nationwide, although these hard money lenders normally want a credit check. Shop around until you find the hard money commercial lenders that will fit your needs.
Please Call Us for Hard money Loan : (504) 527-1904
What is the typical interest rate on a hard money loan?
As a result, they'll often charge high-interest rates to mitigate the risks. Although these rates vary from one hard money loan lender to another, the average hard money loan interest rate for 2020 is 11-13%, according to Bankrate. Still, depending on the lender, it might be anywhere between 7% and 15% annually.
Questions to ask Hard Money Lenders
How much experience do you have in hard money lending?
What is your real estate license ID?
Are you a direct hard money lender or will you broker this loan to another company?
Do you have references from previous borrowers?
What is your interest rate and how many points do you charge?
Hard money lenders typically charge fees to the borrower for providing the loan. These fees are called “points.” Points on a hard money loan are generally equal to one percentage point of the loan but can range anywhere from 2% to 4% of the total amount loaned.
How is hard money interest calculated?
To calculate the total interest paid on a hard money loan, you essentially just multiply the monthly repayment amount, by the number of months that you hold the property for. So if your repayment is $1500, and you hold the property for 12 months, the total interest paid would be $18,000.