Agents Online Real Estate Forums, Discussion, Realtors Marketing Tips

Follow AgentsOnline on Twitter

Click Here to display our logo on your site and link to us!
AgentsOnline Real Estate Discussion Forums Logo

Realtor CommunityA popular online real estate community since 1998!


Advertisements


Sponsored Links
Advertisements
How To Advertise Here
How To Advertise Here

Good Idea!
Realtor Promotion Service

Sponsored Links
(Views)Popular Topics
I MAKE 100 COLD CALLS EVERY DAY & LOVE IT! 28987762
No new orders today 13215382
Stupid MLS comments. 3508646
What do you know about Froy Candelario, top agent in USA 1321930
Stupid QC comments and BPO requirements. 1158143
New HUD Listing Brokers---Any Update? 1113028
Is there religious content in Buffini class? 899104
Let's talk about our cars 747293
Most common items found at an REO 675533
Pay it Forward - BPO/REO Tips & Tricks I & II 662603
Name that Flick. Great movie Lines. 659146
REOTRANS 504682
Main Street 484604
EML 459242
asset val seminar in colorado 447168
assist 2 sell or 1 percent realty? 384382
HOMONYMS - There, Their, and They're 362447
Evalonline 300214
Land America 285054
Mainstreet 261863
Matched Content
Topic Options
Rate This Topic
#460597 - 02/07/18 11:37 PM How do real estate hard money lenders get compensated?
Investingforlife Offline
Junior Member

Registered: 02/07/18
Posts: 2
Loc: California
Do they usually get a base plus commission or just a straight commission? Is it like loan officers , 3%?

Top
Advertisements
#460599 - 02/08/18 05:25 AM Re: How do real estate hard money lenders get compensated? [Re: Investingforlife]
Vermont Offline
Major Contributor

Registered: 04/12/08
Posts: 7950
Loc: Vermont's North-East Kingdom
Because they're usually taking serious risks by loaning their own money, they are compensated with handsome interest rates on the sub-prime loans they make, and many protective clauses in the mortgages they write.

Then, if the margins are sufficient, they can also gain some profit by selling the Note in an aftermarket, and start over again with the same capital.
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont
Where We're Always Striving To Put Together "THE FAIR DEAL"

Top
#460600 - 02/08/18 06:34 AM Re: How do real estate hard money lenders get compensated? [Re: Investingforlife]
Long Walk Offline
Member

Registered: 06/27/08
Posts: 381
Loc: New Hampshire
Are you looking to borrow or are you looking to lend?

The hard money I borrowed for our rehabs, or the sales I brokered where my buyer used hard money had the same basic terms: 10-15% interest rate, non-amortizing loan, 50-70% LTV of the repaired value, and 6-10 discount points charged at loan origination.

Most hard money lenders that I encountered were loaning their own money out of a 401K or some other investment. I also met a fellow, but never got to do business with him, who was a loan officer in a firm that did hard money across the Southeast.

You can tell from the loan terms what the compensation would be if the lender were loaning their own money. I have no idea what they might earn working for a lending firm.

Top
#464265 - 04/13/19 11:37 AM Re: How do real estate hard money lenders get compensated? [Re: Investingforlife]
TimWin23 Offline
Member

Registered: 05/07/18
Posts: 43
Loc: Chicagoland
They make money on interest. The ones I worked with charged X points up front and than X points per month until it was paid back. They made crazy amounts of cash on interest.

Top
#465846 - 09/11/19 11:39 AM Re: How do real estate hard money lenders get compensated? [Re: Investingforlife]
Chris Goerge Offline
Member

Registered: 09/03/19
Posts: 10
Loc: Canada
A hard money lender is a private investor who offers rapid loans with property used as collateral. In other words, a hard money lender does not finance loans with money from deposits, like banks and other financial institutions do.

Top






Google Custom Forum Search

This Google Custom search may do a better job of searching the forums for some keywords than the old forum search does. The results do not include threads from the Asset Managers Forum however. To search that forum you will need to be actually in the Asset Managers Forum and you will need to use the old forum search below.
Search

Newest Members
REOHomie, JenniferVillalba, kumarbuilders, andr3s017, joanna omile
30919 Registered Users
Who's Online
2 registered (Desert Vas, Trouble), 49 Guests and 6 Spiders online.
Key: Admin, Global Mod, Mod
Shout Box

Top Posters (30 Days)
CathCoy 22
realestategreat 13
ManhattanMiami 13
Bigtoe 12
Trouble 12
Z06Fanatic 10
Chris Goerge 9
Snap Up 8
JessicaHawthorne 5
OahuAgent 5
CREBuyer 4
T.T. 4
Mr. Clean 4
Rocky 4
estatereal 4
Featured Member
Registered: 07/14/07
Posts: 66
Facebook

How To Advertise Here


This site presented by RNC Internet Services