John Mosier, Prescott's Patriot Agent  928 533-8142 (Realty ONE Group Mountain Desert)

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Rainmaker
445,680
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

What's more important, the cost of the money or the availability of the money?

Dec 02, 2017 12:57 AM
Rainer
91,529
Richard L. McKinney P.A.
Atlantic Shores Realty Expertise - Port St Lucie, FL
For Results that MOVE you on the Treasure Coast!

I have had many dealings both customer related and personal with private lenders. It all boils down to the borrowers available options. Your particular deal of about 10% is par for the road for hard money. If it's your only option and the is very little hassle with the application process then go for it. 

Dec 02, 2017 02:48 AM
Rainmaker
502,541
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

John, that's ridiculous-- no reason you should be expected to participate. There's a guy in your area we've worked with for 15 years. I'll message you his contact information.

Dec 02, 2017 02:02 AM
Rainmaker
1,294,418
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Area Real Estate

You either do the deal or you don't. The guy with the money has the upper hand.

Dec 02, 2017 05:36 AM
Rainmaker
359,119
Anthony Acosta - ALLATLANTACONDOS.COM
Harry Norman, REALTORS® - Atlanta, GA
Associate Broker

I have never worked with one.

Dec 02, 2017 07:12 AM
Ambassador
2,226,839
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Honestly, if the buyer needs private financing and they're willing to pay 10% interest (the $10K), then whether it's reasonable is up to the buyer. 

I might also suggest getting quotes from other private lenders.

Dec 01, 2017 10:31 PM
Ambassador
3,098,767
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

My investment business started with private lenders, fortunately I never had to pay a premium like this.  Some charged higher interest, some a piece of the profit, but all worked well with me and helped me to grow.

Dec 02, 2017 08:39 AM
Rainmaker
2,447,832
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

That is like 10 points and that is crazy. Here the average is 3 points and 12% interest on hard money. It could go up to 18% for more risky or a new investor. The highest points i have seen are 5

Dec 02, 2017 05:28 AM
Rainmaker
2,101,323
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Waxhaw/Fort Mill Area Realtor

Easy... I have no such experience. At the end of the day what is or isn't reasonable depends on the value of owning the property to the buyer.

Dec 02, 2017 04:35 AM
Rainmaker
42,217
Steve Bracero
Heisler and Mattson - Shrewsbury, MA
First Time Homebuyer and Investor Specialist

Network with multiple lenders, see what they can offer you 

Dec 02, 2017 03:01 AM
Rainmaker
2,616,175
Tony and Suzanne Marriott, Associate Brokers
Haven Express @ Keller Williams Arizona Realty - Scottsdale, AZ
Serving Scottsdale, Phoenix and Maricopa County AZ

I would if I had but I haven't!

Dec 02, 2017 02:14 AM
Rainmaker
499,174
Sean Casey
Patterson-Schwartz Real Estate - Newark, DE
Greenville, Hockessin, Newark & Bear Homes

Sorry, I don't have any experience in that area.  I'm glad Candice A. Donofrio was able to help you though!

Dec 02, 2017 03:21 PM
Ambassador
1,849,034
Fred Griffin
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

 

 In my experience, it's always a higher rate, and/or a lower LTV.   Not 10 points up front.  Yikes!

Dec 02, 2017 11:26 AM
Rainmaker
968,699
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Seems about right for a hard money loan (even cheap), but I don't have much experience with private lenders.

Dec 02, 2017 10:09 AM
Rainmaker
3,421,440
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding and Marketing

John,

Looks like Candice A. Donofrio has an answer for you..  All the best.  A

Dec 02, 2017 10:09 AM
Rainmaker
493,715
Nathan Gesner
American West Realty & Management - Cody, WY
Broker / Property Manager

Keep shopping it. This sounds unreasonably high to me.

Dec 02, 2017 07:21 AM
Rainmaker
2,373,363
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker

Sounds like you should keep shopping!

Dec 02, 2017 04:35 AM
Rainmaker
611,080
Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Some of them will try to take advantage of people that can't qualify for traditional financing. I would shop around. Here we have "Farm Credit of Virginia's" for example that do land loans. Try to negotiate the fee, pass the fee on to the buyer, or shop around for another lender. Is the final value of the property worth investing the $10,000.00 in?

Dec 02, 2017 04:09 AM
Rainmaker
632,035
Pete Xavier with X Group Real Estate Advocates
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

Depends on your end game and how reasonable your end game is...if paying that premium is your only or best option in acquiring this property.

(After reading your other comment, I'm guessing that I don't have the whole story.)

Dec 02, 2017 12:36 AM
Rainmaker
4,269,008
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Compare his offer with your alternatives. I would talk with a local banker.

Dec 02, 2017 09:13 AM
Rainmaker
229,426
Lynnea Miller
Bend Premier Real Estate - Bend, OR
Premier Real Estate Service in Central Oregon

Hard money lenders set their terms. The buyer can either take it or leave it. If there wasn't a market for those types of loans at those fees, they wouldn't be offering it.

Dec 02, 2017 08:54 AM
Rainmaker
2,434,359
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale - Probate Broker

When I look at "reasonable" my first thought is ... depends.  If that is the only way you can get the home sold ... and the buyer is okay with the premium ... then it would lean towards being reasonable as it was agreed to. 

Dec 02, 2017 08:34 AM
Rainmaker
2,779,162
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Over my career in the business, "owner finacing ' has been rather limited(representing buyers or sellers).  Each "deal" has its own merits.

Dec 02, 2017 07:49 AM
Rainmaker
3,943,774
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

Dave has the right thoughts on this situation....

Dec 02, 2017 07:45 AM
Rainmaker
1,280,222
Michael Setunsky
Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

John Mosier Hard money lenders charge whatever they can get. Asking you to pay the premium is unheard of in my area. I would walk. He may call you back with better terms.

Dec 02, 2017 06:39 AM
Ambassador
1,233,069
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I don't use those types of lenders in my business model.

Dec 02, 2017 06:37 AM
Rainmaker
2,190,235
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

I did private lending and the biggest dynamic is that they/we move at our own speed and arrive at our own values. End result: take it or leave it

Dec 02, 2017 06:04 AM
Rainmaker
3,927,719
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I don't have any experience with them.

Dec 02, 2017 05:51 AM
Rainmaker
599,575
Annette Lawrence , Palm Harbor, FL 727-420-4041
ReMax Realtec Group - Palm Harbor, FL
Making FLORIDA Real Estate EZ

How reasonable?

Not enough data.

However, that $10,000 is not uncommon in private lending situations.

More money is made through lending than facilitating the buying and selling of real estate.

Dec 02, 2017 05:37 AM
Rainmaker
3,708,194
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I have not.

Dec 02, 2017 04:48 AM
Rainmaker
3,224,632
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Have never had this experience.

Dec 05, 2017 01:35 PM
Rainmaker
2,365,726
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

10% for hard money sounds about right on the couple of deals I had.

 

Dec 05, 2017 10:50 AM
Ambassador
3,363,947
Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

My experience is that private lenders earn a premium simply because they can charge it and get it. Other lenders generally won't touch it. Weigh the options and bite the bullet.

Dec 02, 2017 10:01 PM
Rainmaker
1,213,619
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Los Angeles CA

So basically 17%? it is regular for locals. Depends on the lender, but it is from 8 to 24% and up, depends how short/long, how much money loaned, etc. 

Dec 02, 2017 09:54 PM
Rainmaker
3,330,171
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Only 2 times and both without an issue

Dec 02, 2017 09:14 PM