Hidden Hard Money Lender Fees Borrowers Pay
Q: I am looking for hard money to fund a house I want to fix and flip. I’ve been asking different hard money lenders what interest rate and how many points they charge. What else should I be researching? Carl, Bloomfield, NJ
A: If you borrow hard money, there are more costs other than just interest and points. There are endless other fees hard money lenders can and often charge borrowers. Here are 6 other fees that hard money lenders charge: 1. appraisal fees 2. loan fees 3. administration fees 4. inspection fees 5. credit report fees 6. legal fees. That’s just a short list 6 hard money lender fees off the top of my head—-there may be other fees hard money lenders can charge as well. This does not necessarily mean that it’s not worth it to use hard money lenders when you fix and flip a property, so long as you know what you’re getting and what you’re paying for before you borrow money. Thanks for your question, Carl.
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