26
Warning about those hard money lenders in Dallas
I went to check out a property near Deep Ellum last Tuesday and noticed something off. The note said 12% interest but buried on page 4 there was a prepayment penalty of 5 points if you pay off within 24 months. I asked the broker about it and he got real shifty eyed. Has anyone else run into hidden clauses like this on a bridge loan?
2 comments
Log in to join the discussion
Log In2 Comments
caleb_ross1222d ago
oh man, that prepayment penalty thing is such a classic hard money trick. i had almost the exact same thing happen with a lender in Fort Worth a couple years back, thought i was getting a decent rate only to find a 4 point penalty buried in the fine print. what ended up working for me was just being really upfront with the broker and saying look, if you can't show me the full contract right now with all fees listed, i'm walking. they actually caved and gave me a cleaner deal without the penalty after i threatened to take my business elsewhere. idk if it was just that guy being desperate for the loan but it felt good to push back on it.
3
owens.cameron22d ago
Four points isn't that bad, you probably overreacted honestly.
3