What Interest Rate Should You Pay for a Hard Money Rehab Loan?
Q: What interest rate should you pay for a hard money rehab loan? Victor, Dix Hills, NY
A: That’s a great question, Victor and it’s one I hear all the time.
The interest rates on hard money rehab loans vary a little from lender to lender, but generally speaking, the interest rate charged falls within the same range (12-15%).
However, there’s a lot more to consider than just the interest rate you pay when you borrow money to renovate a property. The more important question is regarding the terms of the hard money loan itself, specifically, whether you have to make monthly or quarterly payments on the loan before you sell the property, whether the loan requires a personal guarantee or credit check and how much of your acquisition and rehab costs the hard money lender is willing to fund.
Thanks for your question, Victor, good luck!
For more real estate tips and information, visit my blog at geraldlucas.com.