Sure, you already know to ask about Rates & Points, but what else do you need to know to make sure you’re getting the best loan possible?
10 Ways to Spot a Bad Private or Hard Money Loan
What Blink Says
The Secrets to Unveil...
1.
Do you charge for Appraisals and if so, how much and how long do they take?
No
2.
How long are your Loan Terms (length)?
6-24 Months
3.
Do your loans have any Pre-Payment Penalties?
No
4.
Do you charge Extension Fees? If so, what are they?
Rarely
5.
Is there a Draw Schedule?
No
6.
How fast do you disburse the Draw Request, and are there Escrow Holdbacks?
1-3 Days, No
7.
Is there an additional Wire Fee when you send Draw Funds?
No
8.
Do you charge monthly Servicing Fees?
No
9.
Do you charge a fee to generate my Loan Payoff?
No
10.
Do you charge interest on the undrawn rehab budget?
Not for 120 Days
By asking these key questions, you can save thousands of dollars not only on your current investment but also on future ones. Over your investing career, these savings will significantly boost your bottom line.
