Lets talk hard money rates – in Texas

Ok, before the APR police come out, this commercial not owner occupied (1-4) unit.

I’m simple looking for feedback and want to discuss whats real when borrowing hard money from someone other than

the 3 f’s (friends and family).

we make loans from 12% t0 15% , pending deal size, complexity and risk profile.

Hard money is a bridge, its designed to be short term, not fixed for 30 years.

(yes this includes most private money too).


What are the real costs vs not doing a deal, losing your property or opportunity costs.

example: 500k loan, bank rate of 7% for a bridge, hard money 13%. Your real cost is a 6% premium for private funds, but if your in a deal right (at 70%, your sacrificing about 30k, or 120k vs 150k in profits, but yet you have access to capital and you get your deal done.

Simply looking for feedback on how borrowers and brokers view pricing on hard /private money loans.



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