Re: Hard Money Lending
I am familiar with what Hard Money Lending is primarily used for, and trust me I am not stupid enough to take a deal with ridiculous points.
Like I said I am meeting with him to discuss what he is thinking when it comes to the terms of the deal.
My wife has been in the mortgage industry for 6+ years; we aren't gonna do anything stupid to jeopardize our current position.
He is charging a former co-worker of my wife 5 points on the front of a hard money loan he is doing for him. Same setup he wants us to do, get the HELOC and the HELOC goes to him. But her former co-worker is responsible for all his own carry cost.
5 points doesnt seem too ridiculous to me. Of course we will be responsible for the rates in the HELOC also, but she made it clear to him that we wont be able to cover the carrying costs and he still wants to meet with us.
Trust me when I say I am not going to do anything that will put my family in jeopardy of losing anything at this point in our lives.
BTW, we live around the Memphis market; one of the highest foreclosure markets in the country. So there is money to be made in this market.
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