Our last meeting was awesome….all about funding…
Hard money – structure is points and interest, rates are 3-6 points, 12-16 percent interest, LTV 60-70 percent, typically debt financing with draws, timing to receive funds 2-4 weeks, quick turn around, based on the merit of the deal, personal credit score or income not a factor.
Bank financing – structure is points and interest, rates are 1-3 points, 4-6 percent interest, LTV 60-70 percent, typically debt financing with draws, timing to receive funds 60 plus days longest turn around, project must fit strict bank underwriting criteria , personal credit score and income are a factor.
Private money – structure is points and interest, rates are 1-4 points, 6-12 percent interest, LTV at lender’s discretion, typically debt financing with draws, timing to receive funds 1-2 weeks, usually the fastest turn around, relationship and deal based, personal credit score or income generally not a factor.
Creative financing can also come into play. For example, you can find a partner with down payment funds, invest through self directed ira’s, provide collatoral to lender for better terms, owner financing or subject to the existing mortgage.
When I get the video replay of the event, I will post it for members to recap in the member area of the website. BTW, we are having a spring membership promotion for new members as well as renewing members. Join Boston AREIA before Wed, 4/29 and you will receive $25 discount for individual memberships or $50 discount for joint memberhips. Choose the spring promotion on the payment page after you choose your membership plan.
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