Interest Rates On Hard Money Loans Was Updated And Published On November 26th, 2018
Interest Rates On Hard Money Loans in Chicago depends on various factors.
However, like with any type of lending, interest rates depend on the level of risk lenders have to take.
- Do you believe that?
- Well you shouldn’t
- I just typed in Google Hard Money Chicago and I saw there are companies organically and on Google’s pay per click Add Words advertising Hard Money Loans at 8%
- What they want are suckers
- They want your information
- They want to sell your date
- They may want to steal your identity
- More likely than not, they just want a lead
- They are trying to get as many sales opportunities as possible to and provide them with a Hard or Private Money Mortgage at rates from 12-18%
- They offer a Hard Money Loan at 8% as a teaser, but they really don’t have that rate available
- It is often called a bait and switch
In this article, we will discuss and cover Interest Rates On Hard Money Loans In Chicago For Real Estate Investors.
Regulations On Hard Money Loans
Hard Money Lenders are not regulated by most states, and even then they are regulated loosely by the states who do license them.
- Most Hard Money Lenders are not subject to the same APR or annual rate disclosure or advertising laws that banks and credit unions are
- Therefore, Private and Hard Money Lenders can pretty much advertise whatever they want
As a matter of fact, Bait and Switch advertising tactics are not just norms and commonplace, they are the Hard and Private Money Lenders Industry Standard.
Google Interest Rates On Hard Money Loans
You can Google Hard Money Loans Chicago, New York, LA, Miami, and San Diego and you will always find the Hard Money Loan at 8% on Google.
- Google is the venue for these Hard Money Lenders to advertise
- They are not the Hard Money Industry regulator
- Since the Hard Money Industry has pretty much no regulators, it is important to be an informed consumer
It’s actually more important that you be an informed consumer when dealing with Hard Money Lenders than just about any other industry.
Interest Rates Are Higher On Hard Money Than Traditional Loans
Remember Hard Money Lenders are going to offer rates they can’t find in their 401k or in mutual funds.
- Many 401k’s are getting over 8% over time, and they are relatively secure
- They are going to make credit risks
But they will only lend on investor properties with lots of equity, and purchase properties with a 30-50% down payment.
Basics On Interest Rates On Hard Money Loans
They rarely make loans under 10%, and 12% are considered a low rate.
- However, 18% could be a low rate if you are flipping a property you are going to make a $100,000 on
- The rate should be an acceptable cost of doing business when using Hard Money
- If it’s not, you probably shouldn’t even be looking for a Hard Money Loan
If you have any questions or comments or need to get qualified for Private or Hard Money Loans, please contact Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at GCho@GustanCho.com.
This mortgage blog article was written by Alex Carlucci of Gustan Cho Associates
Related> Google Chicago Hard Money Loans
Related> Hard Money Loans Chicago
November 26, 2018 - 3 min read