One of the biggest questions we get is, “what are the typical terms for a hard money loan?”  They all vary and are usually based on specific records or details. Hi, my name is Gary Myers and I’m the VP of Cogo Capital.

Terms are Based on Risk

Every lender’s going to be a little different, but terms are generally based on risk. As a money lender, what is the risk that I’m going to get my money back? If I lend you $100,000 for acquisition and rehab, what is the risk that you’re going to pay me back or make your monthly payments?

The higher the risk, the higher the points in interest that you will pay. Lower the risk profile, and a borrower lowers the points and interest rate on a loan.

What Determines Risk?

Cogo does not delve into your financial history as much as other lenders. Risk is based on the potential profitability of the deal, credit score, experience, and a few other details.

So if you want to find out what you could qualify for, click the link below.