If you are considering borrowing from a hard money lender, it's important to ask the right questions to ensure that you understand the terms of the loan and can make an informed decision. Here are some questions to consider asking a hard money lender:
What are the interest rates and fees for the loan?
What is the repayment period for the loan?
What is the maximum loan amount that can be borrowed?
Is the interest rate fixed or adjustable?
Are there any prepayment penalties for paying off the loan early?
What is the process for requesting draws for renovations or other expenses related to the property?
What is the lender's policy for late payments or default on the loan?
Is the lender willing to work with the borrower to restructure the loan if necessary?
What is the lender's track record and reputation in the industry?
Asking these questions can help you better understand the terms of the loan and determine whether a hard money loan is the right financing option for your needs. It's always a good idea to carefully consider your options and weigh the pros and cons before committing to a hard money loan.
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